The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper.
If Column Cafe publishes coupons and Row Restaurant does not, then Row Restaurant will earn ________, and Column Cafe will earn ________.
A)$10; $200
B)$25; $25
C)$200; $10
D)$120; $120

Question

The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper.  
 If Column Cafe publishes coupons and Row Restaurant does not, then Row Restaurant will earn ________, and Column Cafe will earn ________.
A)$10; $200 
B)$25; $25 
C)$200; $10 
D)$120; $120

Quizplus · Accepted Answer

If Column Cafe publishes coupons and Row Restaurant does not, then the payoffs will be those in the lower left cell.

The Payoff Matrix Below Shows the Daily Profit for Two