Table 17-12
Suppose That Angelina and Brad Own the Only

question 202

Essay

Table 17-12
Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a high price for senior photo packages. The annual economic profit from each strategy is indicated in the table below:
Angelina
Low price High price
$\begin{array}{c}\begin{array}{|l}\hline\\\text { Brad }\\\\\\\hline\end{array}\begin{array} { | l | l | l | } \hline \text { Low price } & \begin{array} { l } \text { Angelina's profit } = \$ 20,000 \\\text { Brad's profit } = \$ 20,000\end{array} & \begin{array} { l } \text { Angelina's profit } = \$ 4,000 \\\text { Brad's profit } = \$ 23,000\end{array} \\\hline { \text { High price } } & \text { Angelina's profit } = \$ 25,000 & \text { Angelina's pro fit } = \$ 22,000 \\& \text { Brad's profit } = \$ 5,000 & \text { Brad's profit } = \$ 22,000 \\\hline\end{array}\end{array}$
-Refer to Table 17-12. Is there a Nash equilibrium? If so, describe it.

Understand the elements required to establish negligence in tort law.

Grasp the concept of performance-based regulation and its application.

Identify and explain the criteria for product defects under strict product liability.

Understand the requirements for liability under Section 402a of the Restatement of Torts (Second).

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Definitions:

Consumption Subculture

A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity.

Shared Commitment

A mutual agreement or pledge among members of a group to pursue a common goal or adhere to a particular set of standards or principles.

Membership Reference Group

The group to which a consumer actually belongs.

Cognitive

Relating to mental activities such as thinking, understanding, learning, and remembering.