Final Answer:
a. The high output-high output and output-low output pairs of strategies are Nash equilibria.
Step-by-step explanation:
High Output-High Output Nash Equilibrium: In the payoff matrix, when both players choose the high output strategy, neither player has an incentive to unilaterally deviate to another strategy. This is a characteristic of a Nash equilibrium, making statement "a" true.
Output-Low Output Nash Equilibrium: Similarly, when one player chooses high output and the other chooses low output, neither player has an incentive to change their strategy. This forms another Nash equilibrium, supporting the first part of statement "a."
Low Output-Low Output Nash Equilibrium (Not True): Contrary to statement "b," the low output-low output pair is not a Nash equilibrium. If both players choose low output, either player can unilaterally deviate to high output for a higher payoff.
High Output-High Output Collusive Outcome: Statement "c" is incorrect. Collusion typically involves players cooperating to achieve higher joint payoffs, but in the given matrix, the high output-high output pair is a Nash equilibrium, not a collusive outcome.
High Output-High Output Collusive Outcome (Not True): Similarly, statement "d" is false. The high output-high output pair is a Nash equilibrium, not a collusive outcome.
Low Output-Low Output Collusive Outcome (Not True): Contrary to statement "e," the low output-low output pair is not a collusive outcome; it is not a stable strategy for both players.