The figure shown displays the choices that could be made by two coffee shops: Starbucks and Dunkin' Donuts. Both companies are trying to decide whether or not to expand into a new area. The area can only handle one coffee shop's expansion, and the expansion of one shop will cause the other to lose some business. If both coffee shops expand, the market will become saturated and neither will do well. The payoffs for these shops are the additional profits (or losses) they will earn.What will be the outcome of this game?
A) Starbucks will expand and Dunkin' Donuts will not expand.
B) Starbucks will not expand and Dunkin' Donuts will expand.
C) Starbucks and Dunkin' Donuts will both expand.
D) Neither Starbucks nor Dunkin' Donuts will expand.
Correct Answer:
Verified
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