QuIz.FHofmeWOIK OlapterT ngopoy 90116 (7 complete) This Quiz: 16 pts pos This Qu

Question

QuIz.FHofmeWOIK OlapterT ngopoy 90116 (7 complete) This Quiz: 16 pts pos This Question: 1 pt Suppose that Mozilla and Microsoft each develop their own versions of an amazing new Web browser that allows advertisers to target consumers with great precision. Also, the new browser is easier and more fun to use browser or to give it away The payoff matrix shows each firm's economic profit in millions of dollars Microsoft's strategies red squares 3 than existing browsers. Each fem is trying to decide whether to sell the -$200 best a profts. Fill in the four blank headings in the matrix to indicate whether each payof s associated with charging for the browser or giving it away for free Choose the correct statement $300 O A. The equilibrium of this game is that both firms sell the browser O B. The equilibrium of this game is that one Srm gives the browser away sor oe and tho other sels it. O C. The equlibrium of this game is that both frms give the browser way for froe OD. This game has no equitnm -$200 TEXTBO Cick 10 select your anwer 20p 0 commond

Explanation / Answer

The equilibirium of this game is that both firms give the browser away for free.

because there in no dominant strategy for both mozilla and microsoft firm.

so, tha nash equilibirium of this game is that both firms give the browser away for free because in that case payoff of both the firm maximise.

so, the correct option is c.

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