Mick and Nicky need to decide where to locate their restaurants.They each have to simultaneously choose to locate on State or Main.The payoffs are as follows.If both restaurants are located on Main, each player gets a payoff of 5.If they both choose State, the payoffs are 3 to each player.If Mick locates on State and Nicky on Main, Mick gets a payoff of 7 and Nicky gets 8.If Mick locates on Main and Nicky opts for State, Mick gets 8 and Nicky gets 7.What is the Nash equilibrium?
A) (State, State) where the first strategy is Mick's and Nicky's is the second strategy.
B) (State, Main)
C) (Main, Main) and (State, State)
D) (Main, State) and (State, Main)
E) (Main, State)
Correct Answer:
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