Comcast and Verizon are considering which services to offer customers in the Nashville region. Each firm could offer phone service (alone), cable service (alone), or offer both services. We can model these decisions in a payoff matrix (as shown below). What is the Nash equilibrium of the game? Explain your answer. The payoffs in the table can be read: (Comcast's Profit, Verizon's Profit). (1 point)
COMCAST
Offer phone Offer only Offer both
service only cable service
VERIZON Offer phone
service only ($100, $200) ($300, $300) ($200, $300)
Offer only
cable service ($300, $300) ($200, $200) ($400, $100)
Offer both ($100, $400) ($300, $400) ($200, $200)