Consider a market with two firms, Krispy Kreme Doughnuts (KK) and Dunkin' Donuts (DD), that produce donuts. Both firms must choose whether to charge a high price ($1.25) or a low price ($0.85) for their donuts. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. Krispy Kreme's profits are in red and Dunkin' Donuts' are in blue. Krispy Kreme's dominant strategy is to pick a price of $1.25 , and Dunkin' Donuts' dominant strategy is to pick a price of $0.85 . What is the Nash equilibrium for this game? A. Krispy Kreme will choose a price of $1.25 and Dunkin' Donuts will choose a price of $0.85. B. Krispy Kreme and Dunkin' Donuts will both choose a price of $1.25. C. Krispy Kreme will choose a price of $0.85 and Dunkin' Donuts will choose a price of $1.25. D. Krispy Kreme and Dunkin' Donuts will both choose a price of $0.85. E. The game has no Nash equilibrium.

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business.identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats.implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the