Table 16-16 Consider a Small Town That Has Two Grocery Stores from Stores

Table 16-16
Consider a small town that has two grocery stores from which residents can choose to buy a gallon of milk. The store owners each must make a decision to set a high milk price or a low milk price. The payoff table, showing profit per week, is provided below. The profit in each cell is shown as (Store 1, Store 2) .

-Refer to Table 16-16.If grocery store 1 sets a high price,what price should grocery store 2 set? And what will grocery store 2's payoff equal?

A) Low price, $800
B) High price, $100
C) Low price, $500
D) High price, $650

Correct Answer:

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