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MIDrug and WolverineHart are two drug stores. They both are considering whether to enter this market or stay out. The firms independently and simultaneously choose
MIDrug and WolverineHart are two drug stores. They both are considering whether to enter this market or stay out. The firms independently and simultaneously choose their actions. The first entry in the payoff matrix represents WolverineHart payoff and the second entry represents MIDrug's payoff. Both firms have complete information. Use the payoff matrix below to answer the following questions. MIDrug Stay Out Enter WolverineHart Stay Out $10, $0 $4, $1 Enter $0, $0 -$2, -$1 A. Does MIDrug have a dominant strategy? Explain. B. What is the best response for WolverineHart if MIDrug chooses to stay out? C. Identify the Nash Equilibrium
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