Entry leads to higher prices and profits in an industry.

Which of the following facts about competitive ideas is true?

a. A successful competitive idea should be big in terms of investment. b. A competitive idea is usually built on a foundation of other ideas. c. A competitive idea should necessarily be scientific. d. A successful competitive idea must be original.

Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game:

A.  whoever moves first to add pizza will discourage the other from adding pizza.
B.  neither firm will add pizza, regardless of who moves first.
C.  both firms will add pizza, regardless of who moves first.
D.  there is only one possible Nash equilibrium for this game.