Item$20$

$5$

points

Item $20$

A decision matrix shows product strategies of Bob and Sam.The horizontal axis is labeled Sam$$s product strategy and is marked pizza and no pizza from left to right. The vertical axis is labeled Bob$$s product strategy and is marked no pizza and pizza from bottom to top. The product strategies in the decision matrix are as follows. Cell $1.$ Bob$$s product strategy, pizza, A: negative $10$ dollars. Sam$$s product strategy, pizza, A: negative $10$ dollars. Cell $2.$ Bob$$s product strategy, pizza, B: $15$ dollars. Sam$$s product strategy, no pizza, B: $0.$ Cell $3.$ Bob$$s product strategy, no pizza, C: $0.$ Sam$$s product strategy, pizza, C: $15$ dollars. Cell $4.$ Bob$$s product strategy, no pizza, D: $10$ dollars. Sam$$s product strategy, no pizza, D: $10$ dollars.

Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game and Sam moves first, which cell represents the final outcome?

Multiple Choice

A

D

B

C