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:

Value of Change

The perceived benefit or importance of making alterations or modifications within an organization, project, or system to achieve improved outcomes.

Variable

An element, feature, or factor that is liable to vary or change.

Creativity-relevant Skill

Abilities that contribute to an individual's capacity to produce original and valuable ideas or solutions.

Modesty

A trait characterized by a lack of vanity or conceit, often involving a humble view of one's accomplishments or status.