This figure displays the choices and payoffs (company profits)of two music shops-MiiTunes and The Rock Shop.MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices,in the hopes that a new business will not be able to make a profit at such low prices.The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
Given the dominant strategy of MiiTunes according to the figure,we can predict that The Rock Shop:
A) will enter and enjoy profits of $4 million.
B) will enter and lose $2 million.
C) will not enter and earn $0.
D) Their actions cannot be predicted because they do not have a dominant strategy.

Question

This figure displays the choices and payoffs (company profits)of two music shops-MiiTunes and The Rock Shop.MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices,in the hopes that a new business will not be able to make a profit at such low prices.The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
Given the dominant strategy of MiiTunes according to the figure,we can predict that The Rock Shop:
A) will enter and enjoy profits of $4 million. 
B) will enter and lose $2 million. 
C) will not enter and earn $0. 
D) Their actions cannot be predicted because they do not have a dominant strategy.

Quizplus · Accepted Answer

The Answer of  This figure displays the choices and payoffs (company profits)of two music shops-MiiTunes and The Rock Shop.MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices,in the hopes that a new business will not be able to make a profit at such low prices.The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
Given the dominant strategy of MiiTunes according to the figure,we can predict that The Rock Shop:
A) will enter and enjoy profits of $4 million. 
B) will enter and lose $2 million. 
C) will not enter and earn $0. 
D) Their actions cannot be predicted because they do not have a dominant strategy.

This Figure Displays the Choices and Payoffs (Company Profits)of Two