Question: 8 0 A new storefront has room for two new businesses. Elizabeth has rented out half of the space and is deciding whether to open

80 A new storefront has room for two new businesses. Elizabeth has rented out half of the space and is deciding whether to open a BBQ restaurant or a sandwich shop. Harper has rented out the other half of the space and is deciding whether to open a bakery 1d or a plant shop. Each has done some market research and has determined how their profits will vary based on what stores are chosen. See the table below for more information.
\table[[,Elizabeth's Ranking,Harper's Ranking],[(Highest profit),(BBQ, Bakery),(Sandwich, Plant)],[,(Sandwich, Bakery),(Sandwich, Bakery)],[,(Sandwich, Plant),(BBQ, Plant)],[(Lowest profit),(BBQ, Plant),(BBQ, Bakery)]]
So, for example, Elizabeth's greatest profits come if she opens a BBQ restaurant and Harper opens a bakery, while Harper's greatest profits come if she opens a plant shop and Elizabeth opens a sandwich shop. Elizabeth and Harper cannot communicate, so this functions as a simultaneous game (which is the only type of game we have discussed in class). Which of the following is a Nash Equilibrium?
Hint: you should turn the above rankings into a payoff matrix and solve the payoff matrix like we did in class.
Elizabeth opens a sandwich shop, Harper opens a bakery
Elizabeth opens a sandwich shop, Harper opens a plant shop
This game does not have a Nash Equilibrium
Elizabeth opens a bakery, Harper opens a plant shop

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