The small town of Narberth has two pizza stores. Which of the following statements are CORRECT? I. The profits of each store depend on the price of the pizza at the other store.
II) Both stores would increase their profit if they cooperated in setting their prices.

Question

Quizplus · Accepted Answer

In a small town with only two pizza stores, the profits of each store are likely influenced by the pricing strategy of the other store, as they are direct competitors. Additionally, if both stores cooperated in setting prices, they could potentially avoid price wars and increase their profits by maintaining higher prices.

The Small Town of Narberth Has Two Pizza Stores