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Firm 2 Q=6 Q=8 Q = 10 Firm 1 Q=6 72 80 80 72 60 48 Q=8 60 64 60 80 64 48 Q =

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Firm 2 Q=6 Q=8 Q = 10 Firm 1 Q=6 72 80 80 72 60 48 Q=8 60 64 60 80 64 48 Q = 10 48 48 40 80 60 40 Consider an oligopoly with two firms. Each firm can produce a quantity of 6, 8, or 10. The table above summarizes the game, showing the profits for each firm as a result of the quantity produced by both firms. In each cell, the number in the bottom left corner is firm 1's profit, and the number in the top right corner is firm 2's profit. Which of the following is the Nash equilibrium outcome? Firm 1 produces 10 and firm 2 produces 6. Firm 1 produces 8 and firm 2 produces 8. O Firm 1 produces 6 and firm 2 produces 6. Firm 1 produces 10 and firm 2 produces 10. Save All Answers

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