The table shows data for Gizelle and Devin. Use the check mark method to determine which cell, if any, has a Nash
equilibrium, and then choose the correct description.
Gizelle's and Devin's Smoothie
Shops
Devin's price = $6
Gizelle's price = $7
Gizelle's profits = $3,000 Devin's profits
= $2,500
Gizelle's price = $9
Gizelle's profits = $1,000 Devin's profits
= $5,000
Devin's price = $8
Gizelle's profits = $6,000 Devin's profits
= $1,000
Gizelle's profits = $5,000 Devin's profits
= $4,000
The Nash equilibrium is Gizelle earning profit of $5,000 and Devin earning profit of $4,000.
The Nash equilibrium is Gizelle earning profit of $1,000 and Devin earning profit of $5,000.
The Nash equilibrium is Gizelle earning profit of $6,000 and Devin earning profit of $1,000.
The Nash equilibrium is Gizelle earning profit of $3,000 and Devin earning profit of $2,500.