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Business, 25.12.2019 01:31 shunna33

Consider a remote town in which two restaurants, all-you-can-eat cafe and goodgrub diner, operate in a duopoly. both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning. if neither restaurant cleans, each will earn dollar 9,000; alternatively, if they both hire workers to clean, each will earn only dollar 4,000. however, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make dollar 13,000, and the other restaurant will make only dollar 2,000. based on the information given, use the dropdown menus to fill in the table that follows (known as a payoff matrix). all-you-can-eat cafe and goodgrub diner are both profit-maximizing firms. if all-you-can-eat cafe and goodgrub diner decide to collude, the outcome of this game is as follows: all-you-can-eat cafe , and goodgrub diner . if both restaurants decide to cheat and behave uncooperatively, the nash equilibrium of this game is as follows: all-you-can-eat cafe , and goodgrub diner

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Consider a remote town in which two restaurants, all-you-can-eat cafe and goodgrub diner, operate in...
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