-Bonus Pre-Test Assignm.c / @ Take a Test-Aashraya M \\ e Chegg Study l Guided S

Question

-Bonus Pre-Test Assignm.c / @ Take a Test-Aashraya M e Chegg Study l Guided S- x G In Which or The Followvi: × × C Secure https://www.mathxl.com/Student/Player lestasp history d-96093 1 1/3201 //82&testid;=1/3201//g ccng econ xly62fsl Econ 1B03 Evening Section Aashraya Mehta Quiz: Bonus Pre-Test #3 Submit Quiz This Question: 1 pt 9 of 17 This Quiz: 20 pts possible Consider trade relations between Canada and the US. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows: US High Tariffs $65, $75 ($35, $285) Low Tariffs ($140, $5) ($130, $275) Canada High Tariffs Low Tariffs What is the Nash equilibrium? A. B. ( C. 0 D. Both Canada and the US implement low tariffs Both Canada and the US implement high tariffs Canada implements low tariffs and the US high tariffs Canada implements high tariffs and the US low tariffs Click to select your answer Save for Later O Type here to search ENG 2017-11-25

Explanation / Answer

A Nash equilibrium is an action profile a with the property that no player i can do better by choosing an action different from ai , given that every other player j adheres to aj.

SO such kind of outcome here is

when both countries charge high tarrifs

so answer is B

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