This Figure Displays the Choices Being Made by Two
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
If the players in the figure shown act in their own self-interest,then we know that Dunkin Donuts will earn:
A) $2 million.
B) $1 million.
C) $2 million.
D) $0 million.