The game in the figure shown is a version of:
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. the prisoner's dilemma.
B. the first-mover advantage.
C. a sequential game.
D. a repeated game.
C. a sequential game.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Define the following terms briefly and concisely. a. stock b. bond c. portfolio diversification d. mutual fund e. random walk
What will be an ideal response?
Which of the following is a component of aggregate demand?
A. Net exports B. Income C. Government revenues D. Taxes
Desirable characteristics for money do not include
a. divisibility b. portability c. durability d. not being of uniform quality e. a stable supply