The Following Table Shows Two Firms in a Single-Stage Game

question 161

Multiple Choice

The following table shows two firms in a single-stage game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.In the Nash equilibrium of this game,Pepsi earns a profit of ________ and Coca-Cola earns a profit of ________.

• A) $67.5 million; $67.5 million
• B) $30 million; $30 million
• C) $37.5 million; $75 million
• D) $75 million; $37.5 million
• E) $50 million; $50 million

---

Definitions:

Century

A period of one hundred years, often used as a measure of historical time.

Adapt

To make something suitable for a new use or purpose; to modify.

Kathryn Bigelow

An American film director known for her intense, action-packed films, such as "The Hurt Locker" and "Zero Dark Thirty," notable for breaking barriers as a female director in a male-dominated genre.

Sofia Coppola

An American director, producer, and screenwriter known for her distinctive style and films such as "Lost in Translation" and "The Virgin Suicides".