Use the table, with data for Tasha and Hui Er, to answer the question. Use the check mark method to determine which cell contains a Nash equilibrium. Under a Nash equilibrium, Hui Er earns profits of _____, and Tasha earns profits of _____. Table: Tasha’s Car Wash and Hui Er’s Car Wash Hui Er’s price =$5 Hui Er’s price =$9 Tasha’s price =$5 Hui Er’s profit =$3,000 Tasha’s profit =$3,000 Hui Er’s profit =$700 Tasha’s profit =$6,000 Tasha’s price =$9 Hui Er’s profit =$6,000 Tasha’s profit =$700 Hui Er’s profit =$5,000 Tasha’s profit =$5,000
A) $6,000; $700 B) $3,000; $3,000 C) $700; $6,000 D) $5,000; $5,000
Correct Answer:
Verified
Unlock this answer now Get Access to more Verified Answers free of charge