The game between music stores in the figure shows us that:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted.
B. only MiiTunes has a dominant strategy, and so the outcome cannot be predicted.
C. neither store has a dominant strategy, and so the outcome cannot be predicted.
D. None of these statements is true.
D. None of these statements is true.
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When an interest in the people's problems affects the outcome, not the changes themselves, it is known as
a. hawthorne effect b. taylor effect c. laissez faire effect d. groupthink effect
Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states. How would you characterize these stores?
A) Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor. B) They are all monopolistic competitors. C) Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist. D) Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.