Table 1 -Refer to Table 1. Boitumelo and Yusuf Own the Only

question 13

Multiple Choice

Table 1

-Refer to Table 1. Boitumelo and Yusuf own the only two bicycle repair shops in town. Each must choose between a low price for repair work and a high price. The yearly economic profits from each strategy are indicated in the table. The figures on the right side of each rectangle indicate Boitumelo's profits; the figures on the left side indicate Yusuf's profits. Which of the following statements is correct?

• A) Yusuf's dominant strategy is to charge a low price.
• B) Boitumelo's dominant strategy is to charge a high price.
• C) The dominant strategy for both Boitumelo and Yusuf is to charge a low price.
• D) Yusuf's dominant strategy is to charge a high price.

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Definitions:

Control Account

A general ledger account that summarizes and controls the detailed data recorded in subordinate ledger accounts.

Subsidiary Ledger

A detailed ledger containing all account details and transactions for individual component accounts that roll up into a general ledger summary account.

Special Journals

Accounting books designed for recording specific types of transactions in a detailed and efficient manner.

Purchases Journal

A special journal that records all purchases of merchandise on account.