Consider a market with two firms, target and wal-mart, that sell cds in their music department. both stores must choose whether to charge a high price ($3030) or a low price ($1313) for the new miley cyrus cd. these price strategies with corresponding profits are depicted in the payoff matrix to the right. target's profits are in red and wal-mart's are in blue. target's dominant strategy is to pick a price of $ 1313. wal-mart's dominant strategy is to pick a price of $ 1313. what is the nash equilibrium for this game? a. the nash equilibrium is for target and wal-mart to both choose a price of $3030. b. the nash equilibrium is for target and wal-mart to both choose a price of $1313. c. the nash equilibrium is for target to choose a price of $3030 and wal-mart to choose a price of $1313. d. a nash equilibrium does not exist for this game. e. the nash equilibrium is for target to choose a price of

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.