Question
There are two producers of smartphones. Smart phones are have a screen from 2 inches in height to 5 inches in height. Consumer only care
There are two producers of smartphones. Smart phones are have a screen from 2 inches in height to 5 inches in height. Consumer only care about screen size and, specially their ideal screen size is distributed uniformly between2 to 5 inches. Consumer will buy the smart phone with a screen size closet to their ideal screen size. A nash equilibrium for these two producers is described by?
a.One firm producers a smart phone with a 2 inch screen and the other with a 5 inch screen
b. one to make the screen 3 inches and the other 4 inches.
c.Both firms to make a smart phone 3.5 inches
d.There is no nash equilibrium(in pure strategies)
e.None of these answers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started