# Answer on Economics of Enterprise Question for Jeannie Dodge

Question #2915

Consider two firms, A and B that produce super computers. Each can produce the next generation super computer

for math (M) or for chip research (C). However, only one can successfully produce for both markets

simultaneously. Also, if one produces one type, the other might not be able to successfully produce the same type,

because of the limited market. The following payoff matrix illustrates the problem.

Scenario AA

Firm B

M C

Firm A M 2, 1 2, 2

C 1, 1 3, 2

Does a Nash equilibrium exist? (Answer yes or No). If a nash equilibrium exists, give the payoffs

for math (M) or for chip research (C). However, only one can successfully produce for both markets

simultaneously. Also, if one produces one type, the other might not be able to successfully produce the same type,

because of the limited market. The following payoff matrix illustrates the problem.

Scenario AA

Firm B

M C

Firm A M 2, 1 2, 2

C 1, 1 3, 2

Does a Nash equilibrium exist? (Answer yes or No). If a nash equilibrium exists, give the payoffs

Expert's answer

Unfortunately, your question requires a lot of work and cannot be done for free. Submit it with all requirements as an assignment to our control panel and we'll assist you.

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

## Leave a comment