Consider the following decision tree.This tree illustrates hypothetical payoffs to General Mills (GM)and Quaker Oats (Q)if they engage in a price war.
If GM cuts prices,the greatest potential gain is:
A) $5 million per year.
B) $10 million per year.
C) $2 million per year.
D) $3 million per year.
E) none of the above.

Question

Consider the following decision tree.This tree illustrates hypothetical payoffs to General Mills (GM)and Quaker Oats (Q)if they engage in a price war. 
If GM cuts prices,the greatest potential gain is:
A) $5 million per year. 
B) $10 million per year. 
C) $2 million per year. 
D) $3 million per year. 
E) none of the above.

Quizplus · Accepted Answer

The Answer is A

Consider the Following Decision Tree