Question: 3 . ( 2 0 points ) Consider the discrete version of a Cournot competition game. Two firms can each choose from four different quantity
points Consider the discrete version of a Cournot competition game. Two firms can each choose from four different quantity levels: and Each firm has constant marginal cost c The inverse demand function is P qq when q and P q if q a Represent the game in strategic form, that is draw a game matrix with strategies and payoffs.b Solve for the Nash equilibria of the game. Is the game domi nance solvable? That is is there a unique Nash equilibrium to the game that is obtainable through iterated elimination of dom inated strategies
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