The restaurant wars have gotten especially heated on the street where you manage a high-end seafood establishment, Captain Denny's Catch of the Day. On 45^th Avenue, where you are located, there is another seafood restaurant, your primary rival, The Lobsters Have Mallets, Too.

Your restaurant's accountant comes to you one day with the following information. She has been researching what data she can find and has come up with these estimates. Captain Denny's expected profit for the day is the first number in each parentheses.

The Lobsters Have Mallets, Too

	$35/lb.	$30/lb.
$35/lb.	($2,000, $2,000)	(-$1,000, $3,000)
$30/lb.	($3,000, -$1,000)	($1,200, $1,200)

Captain Denny's Catch of the Day

Assuming a one-shot, non-cooperative game, what prices would be charged by the restaurants?

a.

both restaurants would charge $35/lb.

b.

both restaurants would charge $30/lb.

c.

Captain Denny's would charge $35/lb. while Lobsters Have Mallets would charge $30/lb.

d.

Captain Denny's would charge $30/lb. while Lobsters Have Mallets would charge $35/lb.