The accompanying table shows two firms in a single stage game. Each firm makes its decision without knowledge of the other firm's decision. The payoffs for each firm represent economic profits, and each firm strictly prefers more economic profit than less. In the Nash equilibrium of this game, Pepsi earns a profit of _________ and Coca-Cola earns a profit of __________.
A) $67.5 million; $67.5 million
B) $30 million; $30 million
C) $37.5 million; $75 million
D) $75 million; $37.5 million
E) $50 million; $50 million
Correct Answer:
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