​Use the Following to Answer Question

question 57

Multiple Choice

​Use the following to answer question
Consider the following information for a simultaneous move game:  Two discount stores (megastore and superstore) are interested in expanding their market share through advertising.The table below depicts the strategic outcomes (profits) of both stores with and without advertising.

-​If the stores could co-operate,what is the new Nash equilibrium?

• A)​Megastore $95 and Superstore $80
• B)Megastore $305 and Superstore $55
• C)Megastore $65 and Superstore $285
• D)​Megastore $165 and Superstore $115

---

Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis rather than continuously.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, providing a continuous account of inventory balances.

Cost Of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including materials and labor.

ASPE

Accounting Standards for Private Enterprises, a set of accounting standards for private companies in Canada.