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I need help for this homework scenario revision question!

Intel and AMD are a duopoly that

produces CPU chips.

Intel and AMD can conduct R&D or they can not conduct R&D.

The following table shows the payoff matrix for the two firms. The numbers are millions of dollars of profit.


1.  Define Nash equilibrium

2.. What is/are the Nash equilibrium/s in this example? Explain.


Top Answer

1.Nash equilibrium basically is the concept within the game theory where optimal outcome or result of the game is... View the full answer

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