(Table) HH Gregg and Best Buy Are Competing for Sales

question 252

Multiple Choice

(Table) HH Gregg and Best Buy are competing for sales for their newest high-capacity mobile device battery packs. Each firm has a pricing strategy of either a high price or a low price. Profits for each store are listed in the payoff boxes, with Best Buy's payoff listed first. Based on the table, the Nash equilibrium for this game is
$\begin{array}{c}\quad \quad \quad \quad \quad \quad \quad \quad \text { HH Gregg }\\\begin{array}{ccc} \text { Best Buy }\\&& \text { High } & \text { Low } \\&\text { High } & 100,100 & 30,120 \\&\text { Low } & 120,30 & 50,50\end{array}\end{array}$

• A) High, High = (100, 100).
• B) High, Low = (30, 120).
• C) Low, High = (120, 30).
• D) Low, Low = (50, 50).

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