Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Megan Discount No Discount Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 If both Megan and Martha did not discount, what would each earn in yearly income? Megan would earn $50,000; Martha would earn $75,000. Megan would earn $75,000; Martha would earn $60,000. Megan would earn $35,000; Martha would earn $90,000. Megan would earn $70,000; Martha would earn $85,000. Megan would earn $35,000; Martha would earn $85,000.
Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Megan Discount No Discount Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 If both Megan and Martha did not discount, what would each earn in yearly income? Megan would earn $50,000; Martha would earn $75,000. Megan would earn $75,000; Martha would earn $60,000. Megan would earn $35,000; Martha would earn $90,000. Megan would earn $70,000; Martha would earn $85,000. Megan would earn $35,000; Martha would earn $85,000.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers.
| Martha | |||
|---|---|---|---|
| Megan | Discount | No Discount | |
| Discount | $50, $75 | $75, $60 | |
| No Discount | $35, $90 | $70, $85 |
If both Megan and Martha did not discount, what would each earn in yearly income?
Megan would earn $50,000; Martha would earn $75,000.
Megan would earn $75,000; Martha would earn $60,000.
Megan would earn $35,000; Martha would earn $90,000.
Megan would earn $70,000; Martha would earn $85,000.
Megan would earn $35,000; Martha would earn $85,000.
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