This Figure Displays the Choices and Payoffs (Company Profits)of Two

question 33

Multiple Choice

This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop.MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices,in the hopes that a new business will not be able to make a profit at such low prices.The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
The game between music stores in the figure shows us that:

• A) only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted.
• B) only MiiTunes has a dominant strategy, and so the outcome cannot be predicted.
• C) neither store has a dominant strategy, and so the outcome cannot be predicted.
• D) None of these statements is true.

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Definitions:

Sociability Motive

The innate or developed drive to seek social interactions, often driven by the desire for companionship, acceptance, and belonging.

Potential Mate

Describes an individual considered suitable for a romantic or sexual relationship based on certain criteria or preferences.

Physiological State

The condition of normal function of a living organism's body and its systems.

Motivational Arousal

The process of being mentally stimulated to do or feel something, especially to do something creative or achieve goals.