Table 11-6 LimoZeenz and AirPorter and Are the Only Two

question 116

Multiple Choice

Table 11-6
LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 11-6 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 11-6.What is the Nash equilibrium in this game?

• A) There is no Nash equilibrium.
• B) LimoZeenz offers the discount, but AirPorter does not.
• C) AirPorter offers the discount, but LimoZeenz does not.
• D) Both LimoZeenz and AirPorter do not offer the discount.

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Definitions:

Canadian Dollar

The official currency of Canada, symbolized as CAD in the foreign exchange market.

87.5%

A numerical value representing 87.5 parts out of 100; often used in statistical or financial contexts.

Percent Reduction

The percentage by which a quantity is decreased, commonly used in sales and discount contexts.

Interest Rate

The percentage charged on a loan or earned through an investment, representing the cost or yield of capital.