Question

Use the following to answer questions 34-35 Figure: Payoff Matrix for Ajinomoto and ADM Ajinomoto Produce 30 Produce 40 million pounds milion pounds Produce 30 million M$180 ADM200 150 pounds Ainomoto Produce 40 million$150 pounds $200 $160 AD叭 5160 34. (Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM. The optimal combination for maximum combined profit occurs when ADM produces million pounds and Ajinomoto produces mill pounds. A) 30; 30 B) 40: 40 C) 30; 40 D) 40: 30 35. (Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM. The Nash equilibrium combination occurs when ADM produces million pounds and Ajinomoto produces million pounds. A) 30; 30 B) 40; 40 C) 30; 40 D) 40: 30 36. (Figure: Prisoners' Dilemma for Thelma and Louise) Use Figure: Prisoners Dilemma for Thelma and Louise. Thelma and Louise are arrested and jailed for murder. Given the payoff matrix in the figure, the Nash equilibrium behavior is for Thelma and Louise A) to confess; not to confess B) to confess; to confess C) not to confess; to confess D) not to confess; not to confess

Answer 1

34) A. Combined profit is maximised when both produces 30million pounds

35)B. Nash equilibrium is a strategic set where there is no incentive for any player to change their strategy given the strategy of other.

Thus playing/producing 40 million pounds is dominating strategy for both players