According to the figure, if MiiTunes charges low prices, The Rock Shop should:
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. enter the market and earn $4 million.
B. enter the market and lose $2 million.
C. not enter the market and earn $0.
D. It cannot be determined what The Rock Shop will do.
C. not enter the market and earn $0.
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The Willie and Martin Companies were:
a. two groups of Mormon "handcarters" who were stranded when early winter storms interrupted their migration. b. two work teams that were instrumental in completing the first transcontinental railroad. c. the northern and southern branches, respectively, of the Granger organization. d. two railroad construction companies that were found to have "insiders" on the boards of railroad companies with which they contracted.
To stay one step ahead of the forces of competition, a firm can adopt any one of these strategies except
a. Cost reduction b. Product differentiation c. Operating where marginal benefits equal marginal costs d. Develop non-fungible valuable resources