Business

Sienna Pruitt

4 October, 16:35

Consider a market with two firms, target and wal-mart, that sell cds in their music department. both stores must choose whether to charge a high price ($3030 ) or a low price ($1313 ) for the new miley cyrus cd. these price strategies with corresponding profits are depicted in the payoff matrix to the right. target's profits are in red and wal-mart's are in blue. target's dominant strategy is to pick a price of $ 1313. wal-mart's dominant strategy is to pick a price of $ 1313. what is the nash equilibrium for this game?

a. the nash equilibrium is for target and wal-mart to both choose a price of $3030.

b. the nash equilibrium is for target and wal-mart to both choose a price of $1313.

c. the nash equilibrium is for target to choose a price of $3030 and wal-mart to choose a price of $1313.

d. a nash equilibrium does not exist for this game.

e. the nash equilibrium is for target to choose a price of