Table 17-12
Suppose That Angelina and Brad Own the Only

question 136

Essay

Table 17-12
Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a high price for senior photo packages. The annual economic profit from each strategy is indicated in the table below:
Angelina
Low price High price
$\begin{array}{c}\begin{array}{|l}\hline\\\text { Brad }\\\\\\\hline\end{array}\begin{array} { | l | l | l | } \hline \text { Low price } & \begin{array} { l } \text { Angelina's profit } = \$ 20,000 \\\text { Brad's profit } = \$ 20,000\end{array} & \begin{array} { l } \text { Angelina's profit } = \$ 4,000 \\\text { Brad's profit } = \$ 23,000\end{array} \\\hline { \text { High price } } & \text { Angelina's profit } = \$ 25,000 & \text { Angelina's pro fit } = \$ 22,000 \\& \text { Brad's profit } = \$ 5,000 & \text { Brad's profit } = \$ 22,000 \\\hline\end{array}\end{array}$
-Refer to Table 17-12. Does Angelina have a dominant strategy? If so, describe it.

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Definitions:

Administrative Costs

Expenses related to the general operation of an organization, such as salaries of non-production staff, office supplies, and utilities.

Ethics Competency

The ability to understand and apply ethical principles and standards in decision-making processes.

Enron

A former American energy, commodities, and services company based in Houston, Texas, known for one of the biggest accounting frauds and corporate scandals in history.

Span of Control

The number of direct reports or subordinates that a manager or leader oversees, affecting managerial efficiency and organizational structure.