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

question 56

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.
According to the figure,MiiTunes:

• A) has a dominant strategy to charge low prices.
• B) does not have a dominant strategy.
• C) has a dominant strategy to charge high prices.
• D) has more than one dominant strategy.

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Definitions:

Great Man Theory

A leadership theory which postulates that leaders are born with inherent traits, and these traits are responsible for their power and success.

Heroic Theory

The belief that history is primarily shaped by the actions and decisions of great men or heroes whose leadership and vision bring about significant change.

Dual-Process Theory

A cognitive model that postulates two distinct systems for processing information: intuitive (fast) and analytical (slow).

The Raven

A narrative poem written by Edgar Allan Poe, notable for its melodic and dramatic qualities, focusing on a talking raven's visit to a distraught lover.