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Suppose the European governments commit themselves to pay Airbus a subsidy of $50 million if it produces the aircraft. What will be the outcome now?

Suppose the European governments commit themselves to pay Airbus a subsidy of $50 million if it produces the aircraft. What will be the outcome now?

Group of answer choices

A. (Produce, Produce)

B. (Don't produce, Don't produce)

C. (Produce, Don't produce) (Don't produce, Produce)

D. There is more than one Nash Equilibrium.

image text in transcribed
AIRBUS PRODUCE DON'T PRODUCE PRODUCE 10, -40 250, 0 BOEING DON'T PRODUCE 0, 200 0.0

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