Table 17-5
Two discount superstores (Ultimate Saver and SuperDuper Saver) in a growing urban area are interested in expanding their market share.Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base.The following game depicts the strategic outcomes that result from the game.Growth-related profits of the two discount superstores under two scenarios are reflected in the table below.
Table 17-5

-Refer to Table 17-5.If both stores follow a dominant strategy,what will SuperDuper Saver's growth-related profits be
A)$30
B)$55
C)$90
D)$255

Question

Table 17-5
Two discount superstores (Ultimate Saver and SuperDuper Saver) in a growing urban area are interested in expanding their market share.Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base.The following game depicts the strategic outcomes that result from the game.Growth-related profits of the two discount superstores under two scenarios are reflected in the table below.
Table 17-5
​ 
-Refer to Table 17-5.If both stores follow a dominant strategy,what will SuperDuper Saver's growth-related profits be
A)$30 
B)$55 
C)$90 
D)$255

Quizplus · Accepted Answer

If both stores follow their dominant strategy, Ultimate Saver will choose to expand and SuperDuper Saver will choose not to expand. This results in Ultimate Saver's growth-related profit being $50 and SuperDuper Saver's growth-related profit being $55. Therefore, the best choice for SuperDuper Saver is not to expand, which gives them the highest profit.

Table 17-5 Two Discount Superstores (Ultimate Saver and SuperDuper Saver) in a in a Growing