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.
According to the figure,if The Rock Shop enters the market,MiiTunes should:
A) charge a high price.
B) charge a low price.
C) leave the market.
D) give an ultimatum to The Rock Shop.
Correct Answer:
Verified
Correct Answer:
Verified
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