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 Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A)did not publish coupons.
B)also published coupons.
C)chooses either strategy because Column Cafe will have the same profit in either case.
D)only offered coupons half of the time.

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 Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A)did not publish coupons. 
B)also published coupons. 
C)chooses either strategy because Column Cafe will have the same profit in either case. 
D)only offered coupons half of the time.

Quizplus · Accepted Answer

If Row Restaurant publishes coupons, then Column Café would earn $25 if it also publishes coupons versus $10 if it does not.

The Payoff Matrix Below Shows the Daily Profit for Two