Table 14-4 Alpha and Beta Are the Only Firms Selling Gyros in Only

question 238

Multiple Choice

Table 14-4

Alpha and Beta are the only firms selling gyros in the upscale town of Delphi. Each firm must decide on whether to offer a discount to students to compete for customers. If one firm offers a discount but the other does not, then the firm that offers the discount will increase its profit. Table 14-4 shows the payoff matrix for this game.
-Refer to Table 14-4.Does Beta have a dominant strategy and if so, what is it?

• A)Yes, Beta should offer a student discount.
• B)Yes, Beta should not offer a student discount.
• C)There are two dominant strategies: if Alpha offers a student discount then Beta's best bet is to not offer a student discount, but if Alpha does not offer a student discount then Beta should offer a student discount.
• D)No, there is no dominant strategy.

---

Definitions:

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, which can be towards the same sex (homosexuality), opposite sex (heterosexuality), both sexes (bisexuality), or neither (asexuality).

Bisexual

A sexual orientation where a person is sexually, emotionally, and/or romantically attracted to people of the same sex and people of another sex.

Asexual

A sexual orientation where a person does not experience sexual attraction but may experience emotional and/or romantic attraction.

Sexual Attraction

The feeling of finding someone sexually appealing or desiring someone sexually.