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Use the Following to Answer Questions 3-4

Question 7

Multiple Choice

Use the following to answer questions 3-4:
Table 11.1
Payoffs: Henry's Monthly Profit, Nancy's Monthly Profit Use the following to answer questions 3-4: Table 11.1 Payoffs: Henry's Monthly Profit, Nancy's Monthly Profit   -(Table 11.1)  If car dealerships are allowed to be open on Sunday, what is the Nash equilibrium? A)  Henry earns $70K and Nancy earns $70K. B)  Henry earns $100K and Nancy earns $100K. C)  Henry earns $80K and Nancy earns $80K. D)  There is no Nash equilibrium in this market.
-(Table 11.1) If car dealerships are allowed to be open on Sunday, what is the Nash equilibrium?


A) Henry earns $70K and Nancy earns $70K.
B) Henry earns $100K and Nancy earns $100K.
C) Henry earns $80K and Nancy earns $80K.
D) There is no Nash equilibrium in this market.

Correct Answer:

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