Table 16-16 Consider a Small Town That Has Two Grocery Stores from Stores

Table 16-16
Consider a small town that has two grocery stores from which residents can choose to buy a gallon of milk. The store owners each must make a decision to set a high milk price or a low milk price. The payoff table, showing profit per week, is provided below. The profit in each cell is shown as (Store 1, Store 2) .

-Refer to Table 16-16.What is the Nash Equilibrium of this price-setting game?

A) Grocery store 1: Low price
Grocery store 2: Low price
B) Grocery store 1: Low price
Grocery store 2: Ligh price
C) Grocery store 1: High price
Grocery store 2: How price
D) Grocery store 1: High price
Grocery store 2: High price

Correct Answer:

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