Table 17-22 Brian and Matt Own the Only Two Bicycle Repair Shops

question 239

Multiple Choice

Table 17-22
Brian and Matt own the only two bicycle repair shops in town. Each must choose between a low price for repair work and a high price. The annual economic profit from each strategy is indicated in the table. The profits are shown as (Matt, Brian) in each cell.
-Refer to Table 17-22. Which of the following statements is correct if Brian and Matt will play this game only once?

• A)The Nash equilibrium is the high price.
• B)A Nash equilibrium cannot be established unless Brian and Matt collude.
• C)A Nash equilibrium cannot be established without the players repeating the game.
• D)The Nash equilibrium price is the low price.

Comprehend the impact of technology, such as AI and predictive analysis, on sales strategies.

Identify the strategic importance of customer representation within a firm by salespeople.

Recognize the concept and importance of SPIN selling and adaptive selling in personal selling.

Appreciate the critical role of salespeople as links between the firm and customers.

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Definitions:

Self-Enhancement Motive

The inherent desire to improve one’s self-image and to present oneself in a positive light to others.

Self-Enhancement Motive

The drive to maintain or improve one’s self-view or self-esteem, often by focusing on positive feedback and downplaying negatives.

Appraisal Motive

The desire to learn the truth about oneself, including one's traits, abilities, and feelings.

Consistency Motive

The driving force behind individuals' desire to maintain harmony and consistency among their beliefs, attitudes, and behaviors.