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Use the Table, with Data for Tasha and Hui Er

Question 43

Multiple Choice

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  Tasha’s price =$5 Tasha’s price =$9 Hui Er’s price =$5 Hui Er’s profit =$3,000 Tasha’s profit =$3,000 Hui Er’s profit =$6,000 Tasha’s profit =$700 Hui Er’s price =$9 Hui Er’s profit =$700 Tasha’s profit =$6,000 Hui Er’s profit =$5,000 Tasha’s profit =$5,000\begin{array}{l}\text { Table: Tasha's Car Wash and Hui Er's Car Wash }\\\begin{array} { | l | l | l | } \hline & { \text { Tasha's price } = \$ 5 } & { \text { Tasha's price } = \$ 9 } \\\hline \text { Hui Er's price } = \$ 5 & \begin{array} { l } \text { Hui Er's profit } = \$ 3,000 \\\text { Tasha's profit } = \$ 3,000\end{array} & \begin{array} { l } \text { Hui Er's profit } = \$ 6,000 \\\text { Tasha's profit } = \$ 700\end{array} \\\hline \text { Hui Er's price } = \$ 9 & \begin{array} { l } \text { Hui Er's profit } = \$ 700 \\\text { Tasha's profit } = \$ 6,000\end{array} & \begin{array} { l } \text { Hui Er's profit } = \$ 5,000 \\\text { Tasha's profit } = \$ 5,000\end{array} \\\hline\end{array}\end{array}


A) $6,000; $700
B) $3,000; $3,000
C) $700; $6,000
D) $5,000; $5,000

Correct Answer:

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