Using the payoff matrix below(the box), please answer the following questions What is the Nash equilibrium for this game Is this the optimal outcome for both players Assume Jake and Dan agree to set high prices Will such an agreement be kept Why or why not If Jake announces that he will match Dan's prices no matter what, what do you expect the outcome to be Dan's Fruit Company Low Price High Price Low Price Jake 300 Jake 1,750 Jake's Apples Dan 300 Dan 200 High Price Jake 200 Jake 1,300 Dan 1,750 Dan 1,300

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Question: Using the payoff matrix below(the box), please answer the following questions What is the Nash equilibrium for this game? Is this the optimal outcome for

Using the payoff matrix below(the box), please answer the following questions

What is the Nash equilibrium for this game? Is this the optimal outcome for both players?
Assume Jake and Dan agree to set high prices. Will such an agreement be kept? Why or why not?
If Jake announces that he will match Dan's prices no matter what, what do you expect the outcome to be?

Dan's Fruit Company Low Price High Price Low Price Jake = 300 Jake =1,750 Jake's Apples Dan = 300 Dan = 200 High Price Jake = 200 Jake = 1,300 Dan = 1,750 Dan = 1,300

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