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The Numbers in Each Cell Are Each Firm's Profits Refer to the Figure Above

Question 29

Multiple Choice

The numbers in each cell are each firm's profits.  Column Cafe  Row Restaurant  Publish Coupons in  Student Paper  No Coupons  Publish Coupons in  Row: 25,  Row: 200,  Student Paper  Column: 25  Column: 10  No Coupons  Row: 10,  Row: 120,  Column: 200  Column: 120 \begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Column Cafe }\\\text { Row Restaurant }\begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { Publish Coupons in } \\\text { Student Paper }\end{array} & \text { No Coupons } \\\hline \text { Publish Coupons in } & \text { Row: 25, } & \text { Row: 200, } \\\text { Student Paper } & \text { Column: 25 } & \text { Column: 10 } \\\hline \text { No Coupons } & \text { Row: 10, } & \text { Row: 120, } \\& \text { Column: 200 } & \text { Column: 120 } \\\hline\end{array}\end{array}
Refer to the figure above.If Row Restaurant decides to publish coupons,Column Cafe would make the most profit if it:


A) did not offer coupons.
B) also offered coupons.
C) it doesn't matter which strategy is chosen because Column Cafe will have the same payoff in either case.
D) offered coupons half of the time and did not offer coupons the rest of the time.

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