Consider the payoff matrix in Figure 2. What outcomes, if any, are Nash equilibria? a. There is
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Consider the payoff matrix in Figure 2. What outcomes, if any, are Nash equilibria?
a. There is one equilibrium: Firm 1 and Firm 2 both expand West.
b. There is one equilibrium: Firm 1 and Firm 2 both expand South.
c. There is one equilibrium: Firm 1 expands South and Firm 2 expands West.
d. There is one equilibrium: Firm 1 expands West and Firm 2 expands South.
e. There are two equilibria: either can expand West, and the other expands South.
f. All four outcomes are equilibria. g. None.
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