$($Figure: Payoff Matrix for Blue Bottle and Opal Ocean$)$ Use Figure: Payoff Matrix for Blue Bottle and Opal Ocean. The figure shows the potential profits of two producers of bottled water. Each has two strategies available to it: a high price and a low price. The Nash equilibrium occurs when Blue Bottle charges a price and Opal Ocean charges a

$\backslash (\backslash$qquad $\backslash )$ price.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Payoff Matrix for Blue $\backslash \backslash$

Bottle and Opal Ocean

$\backslash$end$\{$tabular$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline & Blue Bottle charges a high price & Blue Bottle charges a low price $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Opal Ocean charges a high $\backslash \backslash$

price

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Blue Bottle earns $\backslash (\backslash$$ $20,000\backslash )$ per week Opal $\backslash \backslash$

Ocean earns $\backslash (\backslash$$ $20,000\backslash )$ per week

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Blue Bottle earns $\backslash (\backslash$$ $50,000\backslash )$ per week Opal $\backslash \backslash$

Ocean earns $\backslash (\backslash$$ $12,000\backslash )$ per week

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Opal Ocean charges a low $\backslash \backslash$

price

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Blue Bottle earns $\backslash (-\backslash$$ $2,000\backslash )$ per week Opal $\backslash \backslash$

Ocean earns $\backslash (\backslash$$ $50,000\backslash )$ per week

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Blue Bottle earns $\backslash (\backslash$$ $10,000\backslash )$ per week Opal $\backslash \backslash$

Ocean earns $\backslash (\backslash$$ $10,000\backslash )$ per week

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

high; high

low; low

high; low

low; high