The Proprietor of Belvedere's Is Faced with the Problem of Deciding

Multiple Choice

The proprietor of Belvedere's is faced with the problem of deciding whether to expand his restaurant facilities now or to wait until some future date to do so. If he expands the facilities now and the economy experiences a period of growth during the coming year, he will make a net profit of $369,000; if he expands now and a period of zero growth follows, then he will make a net profit of $90,000; and if he expands now and an economic recession follows, he will suffer a net loss of $100,000. If he does not expand the restaurant now and the economy experiences a period of growth during the coming year, he will make a net profit of $257,000; if he does not expand now and a period of zero growth follows, he will make a net profit of $190,000. Finally, if he does not expand now and an economic recession follows, he will make a net profit of $160,000. ​
Represent this information in the form of a payoff matrix.
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Hint: The row player is the proprietor of restaurant and the column player is the economy.
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