Two restaurant proprietors, James and May, must simultaneously decide on the locations of their restaurants. The choices are on Pitt Street (P) with a total profit of 100 or King Street (K) with a total profit of 80. If the restaurants choose the same location, they will share the profit of that location equally - that is each gets 50 if they both choose to locate on P and 40 if they both choose K. If they choose different locations, each gets the entire profit of the location that they choose. The Nash equilibrium/equilibria is/are a) __________. This is a b)________ game in which we observe c) _________ product differentiation due to the price effect. In the Nash equilibrium/equilibria, James is d) _________compared to May.

a) (P, K) and (K, P)

b) coordination

c) maximal

d) choose from : 1. better off 2. worse off 3. equally well-off

what is the answer for Question d? and how you solve this?