Mick and Nicky Need to Decide Where to Locate Their

question 8

Multiple Choice

Mick and Nicky need to decide where to locate their restaurants.They each have to simultaneously choose to locate on State or Main.The payoffs are as follows.If both restaurants are located on Main, each player gets a payoff of 10.If they both choose State, the payoffs are 5 to each player.If Mick locates on State and Nicky on Main, each player gets a payoff of 2.If Mick locates on Main and Nicky opts for State each player gets 0.What is the Nash equilibrium?

• A)(State, State) where the first strategy is Mick's and Nicky's is the second strategy.
• B)(State, Main)
• C)(Main, Main) and (State, State)
• D)(Main, State) and (State, Main)
• E)(Main, State)

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Definitions:

Petty Cash Account

A small amount of cash kept on hand to pay for minor or incidental expenses.

Fund Replenishing

The process of adding money to a fund to restore its level after expenses have been incurred.

Making Payments

This process involves the transfer of funds from one party to another to settle a financial obligation or purchase.

Cash Equivalents

Investments with a short duration, easily turned into cash, and having an original maturity of no longer than three months, which are both highly liquid and quickly convertible into precise cash sums.