Question
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:
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