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

question 139

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.If the owners of Pita Pan and Pita Wrapbit meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimise their profits, they should both agree to:

• A)share the context of their conversation with the Australian Competition and Consumer Commission
• B)be more competitive in capturing market share
• C)agree to both not advertise
• D)both advertise

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Definitions:

Database

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