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.The outcome of the game in the figure shown will be:
A. Starbucks will expand and Dunkin Donuts will not.
B. Starbucks and Dunkin Donuts will both expand.
C. Starbucks will not expand and Dunkin Donuts will.
D. neither Starbucks nor Dunkin Donuts will expand.
Answer: A
You might also like to view...
A nation's average annual real GDP growth rate is 6%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 15 years. B. 12 years. C. 20 years. D. 17 years.
Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is
A) the United Kingdom. B) India. C) Canada. D) Russia. E) the United States.
Which type of unemployment contributes to the natural rate of unemployment?
A. Real-wage unemployment B. Cyclical unemployment C. Unemployment of government workers. D. All of these contribute to the natural rate.
Supply-side policy suggests that if we _______ taxes of workers, the _________ labor will increase, causing equilibrium wages to ________
a. raise, supply of, decrease b. cut, supply of, increase c. raise, demand for, increase d. cut, supply of, decrease