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The project funding decisions made by two interdependent research companies, Creative and Genezyz, resulted in a profit of $4 million for Creative and a profit
The project funding decisions made by two interdependent research companies, Creative and Genezyz, resulted in a profit of $4 million for Creative and a profit of $5 million for Genezyz. Which of the following is required for this combination of project choices to be a Nash equilibrium? (A) Genezyz charges a lower price to its customers than Creative does. (B) Neither firm has a dominant strategy. (C) Neither firm could ear higher profits by unilaterally changing its project choice. (D) Creative could earn a higher profit if it chose a different project when Genezyz chose its initial project. (E) The combined profits of the two firms are maximized at the current combination of project choices
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