The Figure Shown Represents the Choices and Payoffs (Company Profits)of

question 58

Multiple Choice

The figure shown represents the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to compete at these prices. The Rock Shop is trying to decide whether or not it should enter the market.According to the figure, The Rock Shop:

• A)should enter the market, regardless of what MiiTunes chooses to do.
• B)should not enter the market, regardless of what MiiTunes chooses to do.
• C)does not have a dominant strategy.
• D)has more than one dominant strategy.

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Definitions:

Win-lose Approach

A conflict resolution strategy where one party's gain is perceived to be at the expense of another's loss.

Emergency

A sudden, unexpected situation requiring immediate action, often to prevent a disaster or harm.

Shouting

Raising one's voice loudly and forcefully, often as a way of expressing strong emotion or commanding attention.

Supervisor

An individual in charge of overseeing and directing the work of others.