Table 16-6 Two Pita-Bread Stores (Pita Pan and Pita Wrapbit) Have Both

question 159

Multiple Choice

Table 16-6
Two pita-bread stores (Pita Pan and Pita Wrapbit) have both recently opened up in a new suburb and are interested in expanding their market share.Both are considering advertising in the surrounding area to entice more customers to come to their stores.The following table depicts the strategic outcome that results from the game.The profits of the two pita-bread stores under two advertising scenarios are shown.
-Refer to Table 16-6.The dominate strategies of Pita Pan and Pita Wrapbit are:

• A)Advertise and Do Not Advertise, respectively
• B)both Advertise
• C)Do Not Advertise and Advertise, respectively
• D)both Do Not Advertise

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and equipment depreciation.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or job orders, based on a selected activity base.

Direct Labor-Hours

The total number of labor hours spent on producing a single unit of a product or service.