Chapter 17 Econ Oligopoly

Refer to Table #1 (above) If both stores follow a dominant strategy, Big Box Deluxe's annual profit will grow by:

$0.50 million

Refer to Table #1 (above) If both stores follow a dominant strategy, Homes R Us's annual profit will grow by:

$0.75 million

Refer to Table #1 (above) When this game reaches a Nash equilibrium, annual profit will grow by:

$0.75 million for Homes R Us and by $0.50 million for Big Box Deluxe

Refer to Table #1 (above) suppose the owners of Big Box Deluxe and Homes R Us meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth-related profit. They should both agree to:

Refrain from increasing their store and parking lot sizes

Refer to Table #1: Increasing the size of its store and parking lot is a dominant strategy for:

both stores