This Figure Displays the Choices Being Made by Two Coffee

question 54

Multiple Choice

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses) they will earn.
If Starbucks and Dunkin Donuts are faced with the game in the figure shown,we can see that:

• A) Starbucks has a dominant strategy, but Dunkin Donuts does not.
• B) Dunkin Donuts has a dominant strategy, but Starbucks does not.
• C) neither company has a dominant strategy.
• D) both companies have a dominant strategy.

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Definitions:

Read-Only Memory (ROM)

A type of non-volatile memory used in computers and electronic devices, storing data permanently and typically containing the system's firmware.

Swap File

A file on a hard disk used as a temporary storage area for data that cannot be held in the main system memory.

Virtual Memory

A memory management capability of an operating system that uses hardware and software to allow a computer to compensate for physical memory shortages, temporarily transferring data from random access memory (RAM) to disk storage.

Hard Drive

A data storage device used in computers and some other digital systems to store and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.