Figure 34 : Serena and Austin Are Spending Their 5th

Multiple Choice

Figure 3.4 : Serena and Austin are spending their 5th wedding anniversary on the remote island of Wabo Wabo. One afternoon, Serena decides to go exploring around the island while Austin chooses to go snorkeling. Earlier in the day, they both decided to get together at dusk to watch the sunset, but neglected to agree where to meet. They both know that the two prime spots for watching the sun go down are at the northernmost point of the island and at the southernmost point of the island. They each have time to only go to one end of the island and they cannot communicate with each other because there is no cell service on the island. Neither Serena nor Austin care about at which end of the island they view the sunset. They only care that they are together when they do. The payoffs for each player are shown in the above payoff matrix.
-Refer to Figure 3.4. A Nash equilibrium is achieved at which cell(s) in the payoff matrix?

A) only at (North, North)
B) only at (South, South)
C) at both (North, North) and at (South, South)
D) There is no Nash equilibrium.