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I need help with this microeconomics question. .> A Click Submit to complete this assessment. Click Submit to complete this assessment. Question 5 2 points
I need help with this microeconomics question.
Click Submit to complete this assessment. Question 5 2 points Question 5 of 5 Save Answer Consider two firms that are choosing the price of competing products. The choices are contained in the payoff table. Each firm can raise price, lower price, or maintain their price. Suppose the game is played once each period forever. If both players play the strategy "always maintain price," is this a Nash equilibrium? Let b = discount rate, 0 < b < 1. Firm B Raise ce Maintain ce Lower ce Raise ce Maintain ce 4 Lower rice Firm A Yes because it dominates deviating from it. O Yes because it dominates lowering price o Yes because it dominates raising price. O No, it is not a Nash equilibrium; it is a strategic equilibrium. O Click Submit to complete this assessment. Question 5 of 5
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