Use the Following to Answer Questions 3-4

question 65

Multiple Choice

Use the following to answer questions 3-4:
Table 11.1
Payoffs: Henry's Monthly Profit, Nancy's Monthly Profit
-(Table 11.1) If car dealerships are allowed to be open on Sunday, what is the Nash equilibrium?

• A) Henry earns $70K and Nancy earns $70K.
• B) Henry earns $100K and Nancy earns $100K.
• C) Henry earns $80K and Nancy earns $80K.
• D) There is no Nash equilibrium in this market.

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Definitions:

Invested

The allocation of resources, typically money, into ventures with the expectation of generating income or profit.

Interest

The cost of borrowing money or the earnings from lending money, calculated as a percentage of the principal amount.

Simple Interest Rate

A rate used to calculate the interest charge on a loan over a specific period of time, not accounting for the effect of compounding.

Investment

The act of distributing funds or resources in anticipation of earning profits or income.