Figure: Payoff Matrix II for Blue Spring and Purple Rain (Figure: Payoff Matrix II for Blue Spring and Purple Rain) Payoff Matrix II for Blue Spring and Purple Rain refers to two producers of bottled water.The Nash equilibrium in the figure is reached when:
A)both firms charge a high price.
B)both firms charge a low price.
C)Blue Spring charges a high price and Purple Rain charges a low price.
D)Purple Rain charges a high price and Blue Spring charges a low price.

Question

Figure: Payoff Matrix II for Blue Spring and Purple Rain  (Figure: Payoff Matrix II for Blue Spring and Purple Rain) Payoff Matrix II for Blue Spring and Purple Rain refers to two producers of bottled water.The Nash equilibrium in the figure is reached when:
A)both firms charge a high price. 
B)both firms charge a low price. 
C)Blue Spring charges a high price and Purple Rain charges a low price. 
D)Purple Rain charges a high price and Blue Spring charges a low price.

Quizplus · Accepted Answer

The Answer of Figure: Payoff Matrix II for Blue Spring and Purple Rain  (Figure: Payoff Matrix II for Blue Spring and Purple Rain) Payoff Matrix II for Blue Spring and Purple Rain refers to two producers of bottled water.The Nash equilibrium in the figure is reached when:
A)both firms charge a high price. 
B)both firms charge a low price. 
C)Blue Spring charges a high price and Purple Rain charges a low price. 
D)Purple Rain charges a high price and Blue Spring charges a low price.