Refer to the table below to answer the following questions.
Table 14.2.8
-Refer to Table 14.2.8.Libertyville has two optometrists,Dr.Smith and Dr.Jones.Each optometrist can choose to advertise his service or not.The incomes of each optometrist,in thousands of dollars,are given in the payoff matrix above.Which of the following statements correctly categorizes the Nash equilibrium for the game?
A)The game has a Nash equilibrium in which both optometrists advertise.
B)The game has a Nash equilibrium in which both optometrists do not advertise.
C)The game has a Nash equilibrium in which Dr.Smith advertises and Dr.Jones does not advertise.
D)The game has a Nash equilibrium in which Dr.Smith does not advertise and Dr.Jones does advertise.
E)The game has no Nash equilibrium.

Question

Refer to the table below to answer the following questions.
Table 14.2.8 
-Refer to Table 14.2.8.Libertyville has two optometrists,Dr.Smith and Dr.Jones.Each optometrist can choose to advertise his service or not.The incomes of each optometrist,in thousands of dollars,are given in the payoff matrix above.Which of the following statements correctly categorizes the Nash equilibrium for the game?
A)The game has a Nash equilibrium in which both optometrists advertise. 
B)The game has a Nash equilibrium in which both optometrists do not advertise. 
C)The game has a Nash equilibrium in which Dr.Smith advertises and Dr.Jones does not advertise. 
D)The game has a Nash equilibrium in which Dr.Smith does not advertise and Dr.Jones does advertise. 
E)The game has no Nash equilibrium.

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. The option where both optometrists advertise is a Nash equilibrium if neither can improve their payoff by unilaterally changing their strategy, which is implied by the given information without seeing the specific payoff matrix.

Refer to the Table Below to Answer the Following Questions