Table 14-8 Two Rival Oligopolists in the Athletic Supplements Industry, the Power

question 203

Multiple Choice

Table 14-8

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 14-8 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 14-8.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.

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Definitions:

Situational Ethics

A theory suggesting that ethical decisions should be made based on the specific context of a situation rather than fixed laws.

Deontology

An ethical theory that emphasizes duty, rules, and the inherent rightness of actions, irrespective of the consequences.

Virtue Ethics

A philosophical approach that emphasizes virtues, or moral character, in ethical decision-making rather than rules or consequences.

Ethics Of Care

A moral theory emphasizing the importance of interpersonal relationships and compassion as fundamental to ethical decision-making.