Joe Is the Owner of the PetroCanada Mini Mart,Sam Is

Multiple Choice

Joe is the owner of the PetroCanada Mini Mart,Sam is the owner of the BP Mini Mart,and together they are the only gas stations in town.At the current price of $1 per litre,each receives total revenue of $1000.Joe is considering cutting his price to 90 cents per litre,which would increase his total revenue to $1350.If Sam's price remains at $1 per litre after Joe cuts his price,Sam will collect $500 in revenue.If Sam cuts his price to 90 cents per litre,his total revenue would also rise to $1350 if Joe continues to charge $1 per litre.Joe will collect $500 in revenue if he keeps his price at $1 per litre while Sam lowers his to 90 cents per litre.Joe and Sam will receive $900 each in total revenue if they both lower their price to 90 cents per litre.You may find it easier to answer the following questions if you fill in the payoff matrix below.
-Refer to the information given above.To both Joe and Sam,__________ is a(n) __________.

A) cutting price to 90 cents per litre;disequilibrium
B) leaving price at $1 per litre;Nash equilibrium
C) leaving price at $1 per litre;dominant strategy
D) cutting price to 90 cents per litre;Nash equilibrium
E) cutting price to 90 cents per litre;strategy that makes them both better off