Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha
Discount No Discount
Discount $50, $75 $75, $60
Megan
No Discount $35, $90 $70, $85

If Megan discounted and Martha did not discount, what would each earn in yearly income?
Megan would earn $50,000; Martha would earn $75,000.
Megan would earn $75,000; Martha would earn $60,000.
Megan would earn $35,000; Martha would earn $90,000.
Megan would earn $70,000; Martha would earn $85,000.
Megan would earn $50,000; Martha would earn $85,000.