Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategi corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not ad (No Ad). The payoffs represent net profit in millions.
-The Nash equilibrium of this game is for Jet Cruises to and Easy Sail to .
A)No Ad; No Ad
B)No Ad; Ad
C)Ad; No Ad
D)Ad; Ad

Question

Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategi corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not ad (No Ad). The payoffs represent net profit in millions.
-The Nash equilibrium of this game is for Jet Cruises to and Easy Sail to .
A)No Ad; No Ad 
B)No Ad; Ad 
C)Ad; No Ad 
D)Ad; Ad

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. In this case, regardless of the other company's decision, both Jet Cruises and Easy Sail have a dominant strategy to advertise (Ad). This leads to the outcome where both choose to advertise, making "Ad; Ad" the Nash equilibrium.

Jet Cruises Wants to Prevent Easy Sail from Entering the Sailboat