Question: Determine the optimal strategy for the situation by representing it as a game and finding the saddle point. State your final answer in the terms

Determine the optimal strategy for the situation by representing it as a game and finding the saddle point. State your final answer in the terms of the original question.

In an ongoing price war between Burger Haven (locally owned) and MacArches (a chain), both restaurant managers plan to change the price of a hamburger by 10. If they both raise their prices, there will be no change in their market shares, but if they both lower their prices, the chain's national advertising will ensure that MacArches gains8%of the market. Again because of advertising, if Burger Haven lowers their price and MacArches raises their price, Burger Haven will gain only4%of the market, but if Burger Haven raises their price and MacArches lowers their price, MacArches will gain9%of the market. Use this information to decide what the managers should do.

MacArches

L: __% __%

R: __% __%

Burger Haven

L: __% __%

R: __% __%

The saddle point is the ___ in row ___ and column ___.

Determine the optimal strategy for the situation by representing it as agame and finding the saddle point. State your final answer in theterms of the original question. In an ongoing price war between BurgerHaven (locally owned) and MacArches (a chain), both restaurant managers plan tochange the price of a hamburger by 10. If they both raisetheir prices, there will be no change in their market shares, butif they both lower their prices, the chain's national advertising will ensurethat MacArches gains8%of the market. Again because of advertising, if Burger Haven

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