Table 11-13 Two Rival Oligopolists in the Athletic Supplements Industry, the Power

question 362

Multiple Choice

Table 11-13
$\begin{array}{c} \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad\text { Power Fuel's (P) Strategy }\\\text { Brawny Juice's (B) Strategy }\begin{array}{|c|c|c|} \hline& \text { High Price } & \text { Low Price } \\\hline{\text { High Price }} & \text { P: } \$ 12 \mathrm{~m} & \text { P: } \$ 16 \mathrm{~m} \\& \text { B: } \$ 12 \mathrm{~m} & \text { B: } \$ 4 m \\\hline {\text { Low Price }} & \text { P: } \$ 4 \mathrm{~m} & \text { P: } \$ 8 \mathrm{~m} \\& \text { B: } \$ 16 \mathrm{~m} & \text { B: } \$ 8 \mathrm{~m}\\\hline\end{array}\end{array}$
Two rival oligopolists in the athletic supplements industry, the Power Fuel Company and the Brawny Juice Company, have to decide on their pricing strategy.Each can choose either a high price or a low price.Table 11-13 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 11-13.Which of the following is true?

• A)Power Fuel's dominant strategy is to select a low price.
• B)Brawny Juice's dominant strategy is to select a high price.
• C)Power Fuel does not have a dominant strategy.
• D)Brawny Juice does not have a dominant strategy.

---

Definitions:

Background Noise

Ambient sound that is not the primary focus but may interfere with or alter the perception of the main audio being listened to or recorded.

Distracting

The act of diverting attention from the intended object of focus, leading to decreased productivity or concentration.

Ignore

To refuse to take notice of or acknowledge; to deliberately overlook or exclude.

Age-Related

Pertaining to the effects or changes that are associated with aging or the progression of age.