Economic 5136 please help. With attached question

MANAGERIAL DECISION MAKING You are the manager of ELX Labs, a multinational pharmaceutical corporation. ELX Labs has been an industry leader for more than a decade, having been first to market for a number of important, cutting-edge drugs. With soaring profits and the respect of competitors and shareholders alike, ELX Labs has had a good run. But darker clouds are ahead, and you will have to make some difficult decisions to keep ELX Labs profitable. ELX Labs faces challenges from inside and outside the company that will require strong management and smart application of game theory. Your company has had a lucrative patent on a cholesterol-lowering drug called Minichol. Minichol has been the highest-selling drug in this market for over a decade. However, GN-Tech Drugs, a rival company, is also currently producing a biosimilar drug that will challenge Minichol's market dominance. A biosimilar drug is a class of drug with a composition and results similar to a name-brand drug. You gather your managerial team to figure out the primary threat GN-Tech Drugs' new biosimilar drug poses to your position in this market. Your team comes up with three possibilities. You have to make the final decision. Of the following possibilities, which do you think poses the biggest threat to ELX Labs? Select an option from the choices below. Drug efficacy is the greatest threat. GN-Tech's biosimilar drug might work better and may dig into your market share. Drug administration is the greatest threat. GN-Tech's biosimilar drug might be easier for patients to take, and may become more desirable. Drug price is the greatest threat. GN-Tech's price point might make its biosimilar drug a more attractive alternative to Minichol. Since GN-Tech's pricing of the new biosimilar drug poses the biggest threat to ELX Labs' position, your team wants to get right to work on figuring out two critical questions: Will GN-Tech price its drug high or low? And what will ELX Labs' response be? However, there is another issue with one of your biggest rivals in another drug market that has the potential to hurt ELX Labs' status and impact future profits. You have been running a repeated game with this rival, and you need to figure out your strategy for them going forward. You relay this to the team, but they're anxious to get going on the pricing issue and don't understand your priorities. Alyssia, one of your most trusted colleagues, asks, "What is the rationale for dealing with any other issues now when we know that GN-Tech poses the greatest immediate threat to our highest-selling drug?' Using your knowledge of game theory and the given context, which of the following would be the best response to her question? "All problems pose equal threats. We need to address problems in the order in which they present themselves, and these problems arose before our issue with GN-Tech." "Whatever decision we make with regard to GN-Tech's pricing will depend on our credibility. GN-Tech has to know we can commit to whatever we say we will do, which means we have to clear up any potential or perceived problems." "We are an industry leader that must always be feared. If we have any problems that our competitors know about, they will lose respect for us, which will result in a weakened market position.&quot