$1$st attempt

Suppose there are two comic book stores in your college town, Olde Tyme Comics and The Marvelous Dungeon, and they decide to operate collusively as a cartel. If both shops abide by the cartel's agreement, each will earn $$200000$ in profit. If both shops cheat on the cartel's agreement, both will earn $$40000$ in profit. If one shop cheats and the other abides by the agreement, the cheater will earn a profit of $$250000,$ while the shop that abides will have a loss of $$20000.$

The Nash equilibrium between Olde Tyme Comics and The Marvelous Dungeon occurs when

Choose one:

A$.$ both shops abide by the cartel's agreement.

B$.$ both shops cheat on the cartel's agreement.

C$.$ Olde Tyme Comics cheats on the agreement and The Marvelous Dungeon abides by the agreement.

D$.$ There is no Nash equilibrium for Olde Tyme Comics and The Marvelous Dungeon.

$100$F $20$ QUESTIONS COMPLETED