# Return to the Tudor-Fordor example in Section 6.A, when Tudor’s low per-unit cost is 5. Let z be the

Return to the Tudor-Fordor example in Section 6.A, when

Tudor’s low per-unit cost is 5. Let z be the probability that Tudor actually

has a low per-unit cost.

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Return to the Tudor-Fordor example in Section 6.A, when Tudor’s low per-unit cost is 5. Let z be the

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(a) Rewrite the table in Figure 8.8 in terms of z.

(b) How many pure-strategy equilibria are there when z =

0? Explain.

(c) How many pure-strategy equilibria are there when z =

1? Explain.

(d) Show that the Nash equilibrium of this game is always

a separating equilibrium for any value of z between 0 and 1 (inclusive).