Multiple Choice
This figure displays 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 make a profit at such low prices.The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure,we can predict the outcome will be that:
A) MiiTunes charges high prices and The Rock Shop does not enter.
B) there is more than one stable outcome to this game.
C) there is no stable outcome to this game.
D) None of these statements is true.
Correct Answer:

Verified
Correct Answer:
Verified
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