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-Sarah and Marisa Are the Only Two Baby-Sitters Available in a Small

Question 109

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  -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
-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

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