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General Car Maker (GCM) is an automobile maker whose main supplier is Fisher Car Parts (FCP). GCM is considering whether or not to invest in
General Car Maker (GCM) is an automobile maker whose main supplier is Fisher Car Parts (FCP). GCM is considering whether or not to invest in a new automobile factory. First, GCM does decide to invest in the new plant, then FCP must decide whether or not to supply their goods at high prices, or low prices. If GCM does invest, and FCP offers high prices, then the payoffs are $500 to each player. If, however, FCP offers low prices, then the payoffs are $2000 to GCM and $400 to FCP. Alternatively, if GCM does not invest in the new factory, then FCP can offer high prices giving payoffs of $600 to GCm and $250 to FCP, or they can offer low prices, giving payoffs of $1,100 to GCM and $200 to FCP. In the rollback equilibirum of this game, what are the payoffs for GCM and FCP? Group of answer choices {GCM = $500, FCP = $500} {GCM = $2000, FCP = $400} {GCM = $600, FCP = $250} {GCM = $1100, FCP = $200}
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