Reference no: EM131602662
Dole and Del Monte play a strategic game when simultaneously deciding what quantity of peaches to can.
If Dole produces at full capacity and Del Monte produces at half capacity, then Dole would earn $33 million in profit and Del Monte would earn $36 million in profit.
If Dole and Del Monte both produce at half capacity, then Dole would earn $34 million in profits and Del Monte would earn $42 million in profit.
If Dole and Del Monte both produce at full capacity, then Dole would earn $28 million in profits and Del Monte would earn $32 million in profit.
If Dole produces at half capacity and Del Monte produces at full capacity, then Dole would earn $30 million in profit and Del Monte would earn $44 million in profit.
What is the Nash equilibrium?
A. Dole produces at full capacity and Del Monte produces at half capacity.
B. Dole produces at half capacity and Del Monte produces at full capacity.
C. Dole produces at half capacity and Del Monte produces at half capacity.
D. Dole produces at full capacity and Del Monte produces at full capacity.