Question::

Jake K Carrier and Timothy F Tourister are the only two luggage retailers in the town of Swinville. Each of them is contemplating whether to spend more on advertising to attract new customers. The payoff matrix below summarises all possible outcomes for Jake K and Timothy F. Timothy F Leave advertising the More advertising same Timothy F: $30,000 profit Timothy F: $20,000 More advertising Jake K: $30,000 profit Jake K: $40,000 Jake K Leave advertising the Timothy F: $40,000 Timothy F: $50,000 same Jake K: $20,000 Jake K: $50,000 O There is no Nash equilibrium in this game O There is one Nash equilibrium in this game, that is, both firms leave their advertising budget the same; each would earn $50,000 of profit. O There are more than one Nash equilibria in this game. O None of the above is correct