Use the following to answer question
Consider the following information for a simultaneous move game: Two discount stores (megastore and superstore)are interested in expanding their market share through advertising.The table below depicts the strategic outcomes (profits)of both stores with and without advertising.

-If the stores could co-operate with each other,it would be efficient
A)For megastore to advertise and for superstore to advertise
B)For megastore to advertise and for superstore not to advertise
C)For megastore not to advertise and for superstore to advertise
D)For megastore not to advertise and for superstore not to advertise

Question

​Use the following to answer question
Consider the following information for a simultaneous move game:  Two discount stores (megastore and superstore)are interested in expanding their market share through advertising.The table below depicts the strategic outcomes (profits)of both stores with and without advertising.
 
-​If the stores could co-operate with each other,it would be efficient
A)​For megastore to advertise and for superstore to advertise 
B)For megastore to advertise and for superstore not to advertise 
C)For megastore not to advertise and for superstore to advertise 
D)​For megastore not to advertise and for superstore not to advertise

Quizplus · Accepted Answer

If both stores do not advertise, they save on advertising costs, which can be efficient if they can maintain their customer base without advertising.

​Use the Following to Answer Question

Use the Following to Answer Question