The Figure Shown Displays the Choices That Could Be Made

question 130

Multiple Choice

The figure shown displays the choices that could be made by two coffee shops: Starbucks and Dunkin' Donuts. Both companies are trying to decide whether or not to expand into a new area. The area can only handle one coffee shop's expansion, and the expansion of one shop will cause the other to lose some business. If both coffee shops expand, the market will become saturated and neither will do well. The payoffs for these shops are the additional profits (or losses) they will earn.Starbucks:

• A)has a dominant strategy to expand.
• B)has a dominant strategy not to expand.
• C)has the first-mover advantage.
• D)should wait to see what Dunkin' Donuts is going to do.

---

Definitions:

Guideline

A set of recommended practices, instructions, or principles aimed at guiding actions or achieving desired outcomes.

Political Process

The activities associated with governance and decision-making within an organization, relating to power and influence.

Decisions Approved

The formal acceptance or ratification of proposed choices or actions by authorized personnel.

Participation Benefits

The advantages or gains obtained from engaging or being actively involved in a particular activity or program.