Question: I need some help with these problems, thank you so much! Text Question 1.4 Question Help A small tourist town has two Italian restaurants, Romano's

I need some help with these problems, thank you so much!

I need some help with these problems, thank you so much! Text

Text Question 1.4 Question Help A small tourist town has two Italian restaurants, Romano's (R) and Giardino's (G). Normally, both restaurants prosper with no advertising. Romano's could take some of Giardino's customers by running radio ads and Giardino's could do the same thing. The one month profit matrix (showing payoffs in thousands of dollars) R is shown to the right. What is the Nash equilibrium in the static (one month) game? No Ads Advertise O A. The Nash equilibrium is for both restaurants to not advertise. 5 8 O B. This game has no Nash equilibria. No Ads O C. The Nash equilibria are for both restaurants to not advertise and for both restaurants to advertise. 5 0 G O D. The Nash equilibria are for one restaurant to advertise and the other to 3 not advertise. O E. The Nash equilibrium is for both restaurants to advertise. Advertise 8 3

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