Table 11-10 Ming and Henri Each Run One of the Two Dry

question 393

Multiple Choice

Table 11-10
$\begin{array}{c}\text { Ming }\\\text { Henri }\begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { offers free pickup } \\\text { and delivery }\end{array} & \begin{array}{l}\text { does not offer free pickup } \\\text { and delnvery }\end{array} \\\hline \begin{array}{l}\text { offers free pickup } \\\text { and delivery }\end{array} & \begin{array}{l}\text { Ming } \$ 20,000 \\\text { Henri: } \$ 50,000\end{array} & \begin{array}{l}\text { Ming } \$ 10,000 \\\text { Henri } \$ 25,000\end{array} \\\hline \begin{array}{l}\text { does not offer free pickup } \\\text { and delivery }\end{array} & \begin{array}{l}\text { Ming } \$ 30,000 \\\text { Henri: } \$ 40,000\end{array} & \begin{array}{l}\text { Ming } \$ 15,000 \\\text { Henri } \$ 45,000\end{array} \\\hline\end{array}\end{array}$
Ming and Henri each run one of the two dry cleaning facilities in the town of Scaraby.Both consider offering free pickup and delivery services. Table 11-10 shows the payoff matrix containing the expected quarterly profits for each firm.
-Refer to Table 11-10.Does Henri have a dominant strategy? If yes,what is it?

• A)Yes, Henri's dominant strategy is to not offer free pickup and delivery.
• B)Yes, Henri's dominant strategy is to offer free pickup and delivery.
• C)No, Henri does not have a dominant strategy - his best outcome depends on what Ming does.
• D)Yes, Henri's dominant strategy is to wait and see what Ming does first.

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Definitions:

Utility Function

A mathematical representation of how choices lead to different levels of happiness or satisfaction, showcasing preferences over a set of goods or outcomes.

Milk Consumption

The amount of milk drunk or used by individuals or populations over a specific period.

Endowment

The total resources available to an individual or economy, including land, labor, capital, and technology.

Price

The amount of money required to purchase a good or service, often determined by factors like supply, demand, and production cost.