The outcome of the game in the figure shown will be:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. Starbucks will expand and Dunkin Donuts will not.
B. Starbucks will not expand and Dunkin Donuts will.
C. Starbucks and Dunkin Donuts will both expand.
D. neither Starbucks nor Dunkin Donuts will expand.
A. Starbucks will expand and Dunkin Donuts will not.
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In the Cournot duopoly model, each firm assumes that
A) rivals will match price cuts but will not match price increases. B) rivals will match all reasonable price changes. C) the price of its rival is fixed. D) the output level of its rival is fixed.
Which of the following is a certificate of indebtedness?
a. stocks and bonds b. stocks but not bonds c. bonds but not stocks d. neither stocks nor bonds