Multiple Choice
The figure shown represents 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 compete at these prices. The Rock Shop is trying to decide whether or not it should enter the market.According to the figure:
A) The Rock Shop has a dominant strategy, but MiiTunes does not.
B) MiiTunes has a dominant strategy, but The Rock Shop does not.
C) neither store has a dominant strategy.
D) both stores have a dominant strategy.
Correct Answer:
Verified
Correct Answer:
Verified
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