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Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The

Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The market demand is given by the following schedule.

Price Quantity
0 30
10 25
16 20
26 15
34 10
35 5
36 0

  1. Construct a payoff table and find a Nash equilibrium from the table.

2. Find a Nash equilibrium in the payoff table constructed in (1).

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