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

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