(Figure: Payoff Matrix for Ozarka and Deer Park) Use Figure: Payoff Matrix for Ozarka and Deer Park. The figure shows the potential profits of two producers of bottled water. Each has two strategies available to it: a high price and a low price. The Nash equilibrium is:

A)Ozarka charges a low price, Deer Park charges a high price.
B)Ozarka charges a low price, Deer Park charges a low price.
C)Ozarka charges a high price, Deer Park charges a low price.
D)Ozarka charges a high price, Deer Park charges a high price.

Question

(Figure: Payoff Matrix for Ozarka and Deer Park) Use Figure: Payoff Matrix for Ozarka and Deer Park. The figure shows the potential profits of two producers of bottled water. Each has two strategies available to it: a high price and a low price. The Nash equilibrium is:
​
 
A)Ozarka charges a low price, Deer Park charges a high price. 
B)Ozarka charges a low price, Deer Park charges a low price. 
C)Ozarka charges a high price, Deer Park charges a low price. 
D)Ozarka charges a high price, Deer Park charges a high price.

Quizplus · Accepted Answer

The Answer of (Figure: Payoff Matrix for Ozarka and Deer Park) Use Figure: Payoff Matrix for Ozarka and Deer Park. The figure shows the potential profits of two producers of bottled water. Each has two strategies available to it: a high price and a low price. The Nash equilibrium is:
​
 
A)Ozarka charges a low price, Deer Park charges a high price. 
B)Ozarka charges a low price, Deer Park charges a low price. 
C)Ozarka charges a high price, Deer Park charges a low price. 
D)Ozarka charges a high price, Deer Park charges a high price.