Question

UMSL BA 5000-Fall 2018 Fatima Arslan Quiz: Chapter 10 and 11 Quiz Submit Quiz This Question: 1 pt 43 of 15 (1 complete) Y This Quiz: 15 pts possible Consider a market with two firms, Target and Wal-Mart, that sell CDs in thelir music department. Both stores must chooae whether to charge a high price ($25) or a low price ($17) for the new Miley Cynus CD. These price strategies with corresponding profits are depicted in the payoft matribx to the right Target's profts are in red and Wal-Mart's are in blue. Target's dominant strategy is to pick a price of Target Price $25 Price $17 Wal-Mart's dominant strateay is to pick a price of $ What is the Nash equilbrium for this game? O A. A Nash equilbrium does not exist for this game. O B. The Nish equilbrium is for Target and Wai-Mart to both choose a price of $17 O C. The Nash equilbrium is tor Target to choose a price of $25 and Wal-Mart to Price-$25 $9,000 $16,000 Wal-Mart Price $17 $1,000 S4 choose a price of $17 O D. The Nash equilbrium is for Target and Wal-Mart to both choose a price of $25 O E. The Nash equilibrium is for Target to choose a price of $17 and Wai-Mart to choose a price of $25