(Table) Suppose you and your best friend are each deciding whether to spend the weekend in Key West or to stay home and study for next week's exam. The payoffs for each of the four possible outcomes are shown in the table (where higher numbers are better and the first number in each box represents your payoff, while the second number represents your friend's payoff) . Which of these scenarios is the Nash equilibrium?
A) You and your friend both travel, for a payoff of (85, 60) .
B) You travel but your friend studies, for a payoff of (75, 70) .
C) You study but your friend travels, for a payoff of (80, 50) .
D) You and your friend both study, for a payoff of (70, 80) .
Correct Answer:
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