
-Sarah and Marisa are the only two baby-sitters available in a small town.Figure 11-14 indicates different combinations of hourly rates charged by the two teenagers,along with their weekly net earnings.If Sarah and Marisa do not collude,then
A) in equilibrium,both will charge $4 per hour
B) in equilibrium,both will charge $5 per hour
C) in equilibrium,Sarah will charge $5 per hour;Marisa will charge $4 per hour
D) in equilibrium,Sarah will charge $4 per hour;Marisa will charge $5 per hour
E) there is no predictable equilibrium
Correct Answer:
Verified
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