Table 11-12
The payoff matrix shown above assumes that Perfect Plants and Floribunda Florist must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery. The amount of profit for one firm depends on whether the other firm offers same-day delivery.
-Refer to Table 11-12.Which of the following statements is true?

Question

Table 11-12
  The payoff matrix shown above assumes that Perfect Plants and Floribunda Florist must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery. The amount of profit for one firm depends on whether the other firm offers same-day delivery.
-Refer to Table 11-12.Which of the following statements is true?

Quizplus · Accepted Answer

According to the payoff matrix, if Perfect Plants offers same-day delivery and Floribunda does not, Perfect earns a profit of $3,000 million, which is less than the profit of $3,500 million that it can earn if it also offers same-day delivery. Similarly, if Floribunda offers same-day delivery and Perfect does not, Floribunda earns a profit of $3,500 million, which is more than the profit of $3,000 million that it can earn if it does not offer same-day delivery. Therefore, Floribunda's best strategy is to offer same-day delivery if Perfect offers it.

Table 11-12 the Payoff Matrix Shown Above Assumes That Perfect