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.
The game between music stores in the figure shows us that:
A) only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted.
B) only MiiTunes has a dominant strategy, and so the outcome cannot be predicted.
C) neither store has a dominant strategy, and so the outcome cannot be predicted.
D) None of these statements is true.

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.
The game between music stores in the figure shows us that:
A) only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted. 
B) only MiiTunes has a dominant strategy, and so the outcome cannot be predicted. 
C) neither store has a dominant strategy, and so the outcome cannot be predicted. 
D) None of these statements is true.

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.
The game between music stores in the figure shows us that:
A) only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted. 
B) only MiiTunes has a dominant strategy, and so the outcome cannot be predicted. 
C) neither store has a dominant strategy, and so the outcome cannot be predicted. 
D) None of these statements is true.

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