Table 17-19 Consider a Small Town That Has Two Grocery Stores from Stores

question 140

Multiple Choice

Table 17-19
Consider a small town that has two grocery stores from which residents can choose to buy a loaf of bread. The store owners each must make a decision to set a high bread price or a low bread price. The payoff table, showing profit per week, is provided below. The profit in each cell is shown as (Store 1, Store 2) .
-Refer to Table 17-19. What is grocery store 1's dominant strategy?

• A)Grocery store 1 does not have a dominant strategy.
• B)Grocery store 1 should always set a low price.
• C)Grocery store 1 should always set a high price.
• D)Grocery store 1 should set a low price when grocery store 2 sets a low price, and grocery store 1 should set a high price when grocery store 2 sets a high price.

---

Definitions:

Prime Working Age

Individuals who are in the age group considered to be in their most productive years, typically between 25 and 54 years old.

Labor-Force Participation Rates

The percentage of the adult population that is either employed or actively seeking employment.

Unemployment Rate

The level of unemployment within the labor force among those who are vigorously searching for jobs.

Economy

The system or range of economic activities in a particular area, involving the production, distribution, and consumption of goods and services.