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

question 265

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 2's dominant strategy?

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

---

Definitions:

Studies

Refers to the pursuit of knowledge, as in academic or scientific research, or the act of examining a subject in detail.

Organizational Norms

The unwritten rules and shared expectations that guide behavior and interaction within an organization.

Labeling Behaviors

The act of describing or classifying someone's actions in a specific way, often with societal or psychological implications.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.