Please answer all questions. Answers must be clear and complete. In addition, you must justify all your answers.

Please answer all questions. Answers must be clear and complete. In addition, you must justify all your answers. You must provide the amount of profits derived from each of the strategic moves you describe.                                                                                                                           

The restaurants choose either a "High" (H) price or "Outrageously High" (OH) price and each aims to maximize its profit. Profits for both restaurants are affected by the decisions on what price (H or OH) each charges. The payoffs (profits/year) are given in the table below.

Do not alter the order of the elements of the matrix)

. Is the likely outcome a Nash equilibrium?