9. When Beta company charge $1000 , then Alpha has more profit in charging $500.
And when Beta company charge $500 ,then Alpha has more profit in
charging $500.
Similarly, when Alpha company charge $1000, then Beta company has
more profit in charging $500.
And when Alpha company charge $500, then Beta company has more profit in charging $500.
This implies that Nash equilibrium: (Charge $500 , Charge $500), that means Beta Co. charging $500 and Alpha Co. charging $500. Hence, option(C) is correct.
10. Because at the Nash equilibrium ,they both end up getting the less optimal outcome , this means that the game is called prisoner's dilemma. Hence, option(B) is correct.
QUESTION 9 Alpha Company's Strategy Charge $1,000 Charge $500 Charge $1,000 (60 Billion, 60 Billion) (20...
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