Two law firms compete for most of the market in the small town of Grumbleton, and must choose their advertising levels simultaneously.The following payoff table facing the two firms, Jackie Chiles Law, LLCand Lionel Hutz Law Firm, shows the weekly profit outcomes for the various advertising decision combinations.Use this payoff table to answer the following three questions.

Hutz Advertising Level: Low Hutz Advertising Level: High Chiles Advertising Level: Low $2500/$2500$1500/$3500 Chiles Advertising Level: High $3500/$1500$2000/$2000

Where is the Nash equilibrium outcome?

Select one:

a. Chiles choose high and Hutzchoose low since Hutz has a dominant strategy whileChileshas a dominated strategy.

b. Both choose low with Chiles getting a slightly larger profit.

c. Both choose high and earn a relatively low combined profit.

d. Chiles choose low and Hutz choose high because Hutz's low strategy is dominated.