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.

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Definitions:

Service Sector

A segment of the economy that involves providing services instead of goods or products to consumers and businesses.

Manual Workers

Individuals who perform physical work, often involving the use of hands and physical skill, in various industries such as construction, manufacturing, or agriculture.

Social Structures

The complex framework of societal institutions (such as the economy, politics, and family) and the social practices (norms, rules, and roles) that make up a society and organize and limit the actions of its members.

Robert Merton

Robert Merton was an American sociologist known for his theories on social structure and anomie.