Consider another small town that is served by two grocery stores, Purple and Yellow. Each store must decide whether it will remain open on Sunday or whether it will close on that day. Monthly payoffs for each strategy pair are as shown in the table below:

a)Which firm is the most profitable in the market?

b)Does the firm you identified in part a have a dominant strategy?

What should this firm do? Explain your answer.

Monthly Profit Payoffs Gray's Choices Open Sundays Closed Sundays Open 8000 7000 White's Sundays 4000 7000 Choices Closed 10000 12000 Sundays 3000 6000