.edu/courses/54719/quizzes/73384/take/questions/1152078BUse the Payoff Matrix below to answer the question that follows.1. Two coffee shops: Café A and Café B, located in opposite corners of a college town, areevaluating two strategies: to spend low on advertising or to spend high on advertising. Thepayoff Matrix below shows the daily profits associated with each strategy for each firm. Thelower entry in each cell indicate Café B's daily profit and the upper entry in each cell indicateCafé A's daily profit.Low SpendingCafé BHigh SpendingLow Spending$220$200Café A$200$170$90$180High Spending$300(a) Does Café A have a dominant strategy? If so, identify it and explain.(b) Does Café B have a dominant strategy? If so, identify and explain.$250Time RunningAttempt due: Ma1 Hour, 0 Mir tsning(c) In the Nash Equilibrium, what are the daily profits for(i) Café A(ii) Café BEdit View Insert Format Tools Table12pt Paragraph ✓ BIUA2✓ T²V⠀

Dominant strategy is the strategy which the player always choose irrespective of the strategy chosen…

Answered: Low Spending Café B High Spending Low…

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Low Spending Café B High Spending Low Spending $220 $200 Café A $200 $170 $90 $180 High Spending $300 $250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(c) In the Nash Equilibrium, what are the daily profits for
(i) Café A
(ii) Café B
Edit View Insert Format Tools Table
12pt Paragraph ✓ BIUA
2✓ T²V
⠀

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