Bagels RUS Is Expanding into a High-Growth Suburban Area

question 36

Multiple Choice

Bagels RUS is expanding into a high-growth suburban area.To promote business and lure customers from the competing Wer Bagel store, they are considering offering a free dozen bagels to the first 50 customers or radio advertisement.The payoff for Bagels RUS is given in the table below.What is the saddle point, if any, for the bagel stores?

• A)3
• B)6
• C)2
• D)-2

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Definitions:

SUTA

State Unemployment Tax Act; a type of payroll tax that employers pay to their state to fund the state's unemployment insurance program.

State Rate

Often refers to the interest rate or tax rate set by individual states, which can vary from one state to another.

FUTA

The Federal Unemployment Tax Act, legislation that funds unemployment compensation programs in the United States.

SUTA

State Unemployment Tax Act, a payroll tax paid by employers to fund state unemployment insurance programs.