Refer to the Payoff Matrix

Multiple Choice

Refer to the payoff matrix. Suppose that Speedy Bike and Power Bike are the only two bicycle manufacturing firms serving the market. Both can choose large or small advertising budgets. Is there a Nash equilibrium solution to this game?

A) There is no possible Nash equilibrium solution.
B) A Nash equilibrium can occur at either cell B or cell C.
C) Cell A represents a Nash equilibrium.
D) Cell D represents a Nash equilibrium.