Use the Table with Data for Bella and Martin to Answer
Question 48
Question 48
Multiple Choice
Use the table with data for Bella and Martin to answer the question. With no cooperation, the Nash equilibrium yields Bella a profit of _____ and Martin a profit of _____. Table: Bella’s and Martin’s Auto Oil Change Companies Bella’s price =$40 Bella’s price = $55 Martin’s price =$35 Bella’s profit =$4,000 Martin’s profit =$3,500 Bella’s profit =$1,000 Martin’s profit =$5,500 Martin’s price =$50 Bella’s profit =$6,000 Martin’s profit =$1,000 Bella’s profit =$5,000 Martin’s profit =$5,000
A) $6,000; $1,000 B) $4,000; $3,500 C) $5,000; $5,000 D) $1,000; $5,500
Correct Answer:
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