Mick and Nicky Need to Decide Where to Locate Their

question 2

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 5.If they both choose State, the payoffs are 3 to each player.If Mick locates on State and Nicky on Main, Mick gets a payoff of 7 and Nicky gets 8.If Mick locates on Main and Nicky opts for State, Mick gets 8 and Nicky gets 7.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:

Market Share

The share of overall market sales volume taken by a particular brand, product, or company.

Pricing Objective

Pertains to the goals a company aims to achieve through its pricing strategies, such as maximizing profit, capturing market share, or supporting product positioning.

Household Bleach

A common liquid chemical used in homes to disinfect surfaces, whiten clothes, and remove stains.

Maximizing Current Profit

A business strategy that focuses on generating the highest possible profit in the short term, sometimes at the expense of long-term viability.