Lori and Maya Are Competitors in a Local Market

question 488

Multiple Choice

Lori and Maya are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $10,000. If they both advertise on radio, each will earn a profit of $14,000. If neither advertises at all, each will earn a profit of $20,000. If one advertises on TV and other advertises on radio, then the one advertising on TV will earn $16,000 and the other will earn $6,000. If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $30,000 and the other will earn $4,000. If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $24,000 and the other will earn $8,000. If both follow their dominant strategy, then Lori will

• A)advertise on TV and earn $10,000.
• B)advertise on radio and earn $14,000.
• C)not advertise at all and earn $20,000.
• D)None of the above is correct. Lori and Maya do not have dominant strategies.

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Definitions:

Abilities

The natural or acquired skills and talents that enable individuals to perform tasks effectively.

Career Development

The process of growth and progression in one's professional life, often involving education, training, and work experience.

Career Plan

A strategic outline of a person's work path and professional development goals over time.

Key Competency

Essential skills, abilities, or knowledge that are critical for success in a specific job, profession, or field of study.