A Starbucks and Dunkin' compete for coffee customers on Cooper Street. Each can sell a large coffee for either $1 or $2 with 60% of the price being profit. It is expected that 2000 large coffees will be bought by UTA students per month at the two coffee shops and 1000 per month by non-students. Students choose the shop with the most inexpensive coffee if possible. When the prices are the same, students are equally likely to choose either coffee shop. Non-students are always equally likely to choose either coffee shop. If the goal of both coffee shops is to maximize profit for large coffees (and thereby all coffee hopefully), what would be the strategies for both coffee shops in a two-person game? O $1 and $2 O 1000 and 2000 O 80% and 20% Onone of the other choices

A Starbucks and Dunkin' compete for coffee customers on Cooper Street. Each can sell a large coffee for either $1 or $2 with 60% of the price being profit. It is expected that 2000 large coffees will be bought by UTA students per month at the two coffee shops and 1000 per month by non-students. Students choose the shop with the most inexpensive coffee if possible. When the prices are the same, students are equally likely to choose either coffee shop. Non-students are always equally likely to choose either coffee shop. If the goal of both coffee shops is to maximize profit for large coffees (and thereby all coffee hopefully), what would be the strategies for both coffee shops in a two-person game? O $1 and $2 O 1000 and 2000 O 80% and 20% Onone of the other choices

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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