This Figure Displays the Choices Being Made by Two Coffee

Multiple Choice

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses) they will earn.
If Starbucks and Dunkin Donuts are faced with the game in the figure shown,we can see that:

A) Starbucks has a dominant strategy, but Dunkin Donuts does not.
B) Dunkin Donuts has a dominant strategy, but Starbucks does not.
C) neither company has a dominant strategy.
D) both companies have a dominant strategy.