Table 11-9 Alpha and Beta Are the Only Firms Selling

Multiple Choice

Table 11-9
Alpha and Beta are the only firms selling gyros in the upscale town of Delphi. Each firm must decide on whether to offer a discount to students to compete for customers. If one firm offers a discount but the other does not, then the firm that offers the discount will increase its profit. Table 11-9 shows the payoff matrix for this game.
-Refer to Table 11-9.If Alpha assumes that Beta would offer a student discount,what should it do?

A) Alpha should not offer a student discount.
B) Alpha should also offer a student discount.
C) Alpha should wait at least a year to see if Beta stops offering a student discount before making a decision.
D) Being a duopolist, Alpha is not affected by Beta's choices because it has a secure 50 percent market share.