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 game in the figure is shown using a:

A. decision matrix.
B. flowchart.
C. graph.
D. decision tree.


Answer: D

Economics

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Explain how, according to the theory of PSST (patterns of specialization and sustainable trade), economic activity can decline in the face of unchanged aggregate demand. Give a hypothetical example to help support your answer

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Economics

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Economics