Question: Table 1 7 - 1 3 Two home - improvement stores ( Lopes and HomeMax ) in a growing urban area are interested in expanding
Table
Two homeimprovement stores Lopes and HomeMax in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from the game. Increases in annual profits of the two homeimprovement stores are shown in the table below.
Lopes
Increase the size of store
Do not increase the size of and parking lot store and parking lot
Increase the size of store and parking lot HomeMax
tabletableLopes $ millionHomeMax $ milliontableLopes $ millionHomeMax $ millionLopes $ million,Lopes $ millionHomeMax $ million,HomeMax $ million
Refer to Table If both stores follow a dominant strategy, HomeMax's annual profit will grow by
$ million.
$ million.
$ million.
$ million.
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