K mart and Wal-mart are considering establishing either 1 or 2 stores in a town the payoff matrix which gives the profits of each company is as follows (profits are in millions of dollars)   Walmart One Two K mart One 10,10 7,12 Two 6,4 5,5 What is the equilibrium outcome in this game? K mart builds _____ store(s) and Wal-mat builds ______ store(s)   A. 1,1   B. 2,1   C. 1,2   D. 2,2

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Oligopoly
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  1. K mart and Wal-mart are considering establishing either 1 or 2 stores in a town the payoff matrix which gives the profits of each company is as follows (profits are in millions of dollars)

      Walmart
    One Two
    K mart One 10,10 7,12
    Two 6,4 5,5

    What is the equilibrium outcome in this game? K mart builds _____ store(s) and Wal-mat builds ______ store(s)



      A.

    1,1

      B.

    2,1

      C.

    1,2

      D.

    2,2

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