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Lawmakers (were) considering proposals to allow liquor stores to be open on Sundays. Suppose there are two stores.Total liquor spending per week is $120, and

Lawmakers (were) considering proposals to allow liquor stores to be open on Sundays.

Suppose there are two stores.Total liquor spending per week is $120, and it is apportioned among the stores according to how many days they are open.If N1is the number of days per week that store 1 is open, and N2 is the number of days per week that store 2 is open, then store 1's revenue = 120*N1/( N1+ N2).Currently, both stores are open 6 days per week.The cost structure is as follows: one half of revenue covers variable costs exactly.In addition, it costs $2 per day to operate the store.

Hence, the payoff - profit - to store 1 = 0.5*120* N1/( N1+ N2)- 2 N1.The payoff to store 2 is symmetric.

Fill in the following matrix, with (payoff to store 1, payoff to store 2) in each cell:

image text in transcribed
Store 2 open 6 days Store 2 open 7 days Store 1 open 6 days Store 1 open 7 days

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