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which of the following is correct l Two rms are considering going out of business and selling their assets. Each considers what happens if the

which of the following is correct

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l Two rms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each rm. Firm A Stays in business V Sells business Firm B i Stays in business A gains $90 million A gains $70 million B gains $70 million B gains $40 million ' Sells business A gains $40 million A gains $10 million B gains $80 million B gains $30 million Refer to Table. The dominant strategy A for rm B is to not stay in business and there is no dominant strategy for rm A causing a $40 million gain for rm A at the Nash equilibrium. m for both firms is to not stay in business causing a $10 million gain for rm A at the Nash equilibrium. m for rm A is to stay in business and there is no dominant strategy for rm B causing a $80 million gain for rm B. m for both firms is to stay in business causing a $70 million gain for rm B at the Nash equilibrium

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