Use the Table, with Data for Vlad and Assad, to Answer
Question 42
Question 42
Multiple Choice
Use the table, with data for Vlad and Assad, to answer the question. Use the check mark method to determine which cell has a Nash equilibrium. When there is a Nash equilibrium, Vlad earns profits of _____, and Assad earns profits of _____. Table: Profits for Vlad’s and Assad’s Cookie Companies Vlad charges $1 per cookie. Vlad charges $3 per cookie. Assad charges $1 per cookie. Vlad’s profits =$2,000 Assad’s profits =$2,000 Vlad’s profits =$500 Assad’s profits =$3,500 Assad charges $3 per cookie. Vlad’s profits =$3,500 Assad’s profits =$500 Vlad’s profits =$3,000 Assad’s profits =$3,000
A) $3,000; $3,000 B) $3,500; $500 C) $500; $3,500 D) $2,000; $2,000
Correct Answer:
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