The accompanying table shows two firms in a single-stage game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.In the Nash equilibrium of this game,Pepsi earns a profit of ________ and Coca-Cola earns a profit of ________.

A) $67.5 million; $67.5 million
B) $30 million; $30 million
C) $37.5 million; $75 million
D) $75 million; $37.5 million
E) $50 million; $50 million

Question

The accompanying table shows two firms in a single-stage game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.In the Nash equilibrium of this game,Pepsi earns a profit of ________ and Coca-Cola earns a profit of ________.

A) $67.5 million; $67.5 million 
B) $30 million; $30 million 
C) $37.5 million; $75 million 
D) $75 million; $37.5 million 
E) $50 million; $50 million

Quizplus · Accepted Answer

The Answer of The accompanying table shows two firms in a single-stage game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.In the Nash equilibrium of this game,Pepsi earns a profit of ________ and Coca-Cola earns a profit of ________.

A) $67.5 million; $67.5 million 
B) $30 million; $30 million 
C) $37.5 million; $75 million 
D) $75 million; $37.5 million 
E) $50 million; $50 million

The Accompanying Table Shows Two Firms in a Single-Stage Game