Two Supermarkets, R and C, Want to Run a Promotional

Multiple Choice

Two supermarkets, R and C, want to run a promotional on the same item. A market research firm provided the payoff matrix below, where each entry indicates the percentage of customers going to market R at the indicated prices of that item. Find the saddle value, and the optimum strategy for each store.

A) 60%; R sells the item at $1.85, C sells the item at $1.55.
B) 60%; R sells the item at $1.55, C sells the item at $1.85.
C) 50%; R sells the item at $1.85, C sells the item at $1.55.
D) 50%; R sells the item at $1.55, C sells the item at $1.85.