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Two Donut Shops Compete Against Each Other in a Town

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Two donut shops compete against each other in a town. Both are considering an increase in increasing the quality of the flour and other baking goods. Their interdependent alternatives are described by the payoff matrix.
Two donut shops compete against each other in a town. Both are considering an increase in increasing the quality of the flour and other baking goods. Their interdependent alternatives are described by the payoff matrix. What is each firm's optimal strategy and anticipated payoff? What is each firm's optimal strategy and anticipated payoff?

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