Table 17-13
Two home-improvement stores (Lopes and HomeMax) 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. Increases in annual profits of the two home-improvement stores are shown in the table below.
-Refer to Table 17-13. Increasing the size of its store and parking lot is a dominant strategy for
A)Lopes, but not for HomeMax.
B)HomeMax, but not for Lopes.
C)both stores.
D)neither store.

Question

Table 17-13
Two home-improvement stores (Lopes and HomeMax) 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. Increases in annual profits of the two home-improvement stores are shown in the table below. 
-Refer to Table 17-13. Increasing the size of its store and parking lot is a dominant strategy for
A)Lopes, but not for HomeMax. 
B)HomeMax, but not for Lopes. 
C)both stores. 
D)neither store.

Quizplus · Accepted Answer

Both stores have the potential to increase their annual profits by expanding the size of their store and parking lot. Therefore, it is a dominant strategy for both stores to pursue this option.

Table 17-13 Two Home-Improvement Stores (Lopes and HomeMax) in a Growing Urban