Question: Please point out which potion is true and explain why. Thanks A) (Low, Low) is a Nash equilibrium in this game. B) (High, High) is

Please point out which potion is true and explain why. ThanksPlease point out which potion is true and explain why. Thanks A)

A)

(Low, Low) is a Nash equilibrium in this game.

B)

(High, High) is a Nash equilibrium in this game.

C)

There is no Nash equilibrium in this game.

D)

The players do not have dominant strategies in this game.

The payoff matrix above shows the strategic interaction between two individuals; A and B. Each player must choose between two actions: high or low, without knowing the action chosen by the other player. There are four possible outcomes: (High, High), (Low, Low), (High, Low) and (Low, High). Each player is self interested and only cares about obtaining the highest payoff. Each quadrant of the payoff matrix shows the payoffs each player gets in that outcome. Higher numbers indicate better payoffs. For each outcome, the number on the left indicates the payoff received by player A and the number on the right indicates the payoff to player B. Which of the following statements is not true

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