Table $17-6$

Two home$-$improvement stores $($Lopes and HomeMax$)$ in a growing urban area are interested in expanding their marke 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 $($in millions of dollars$)$ of the two home$-$improvement stores are shown in the following figure.

Lopes

Increase the size of store

Do notincrease the size of

$3.$ Refer to Table $17-6.$ Pursuing its own best interest, Lopes will

a$.$ increase the size of its store and parking lot only if HomeMax also increases the size of its store and parking lot.

b$.$ increase the size of its store and parking lot only if HomeMax does not increase the size of its store and parking lot.

c$.$ increase the size of its store and parking lot regardless of the decision made by HomeMax.

d$.$ not increase the size of its store and parking lot regardless of the decision made by HomeMax.

$4.$ Refer to Table $17-6.$ Increasing the size of its store and parking lot is a dominant strategy for

a$.$ Lopes, but not for HomeMax.

b$.$ HomeMax, but not for Lopes.

c$.$ both stores.

d$.$ neither store.

$5.$ Refer to Table $17-6.$ If both stores follow a dominant strategy, Lopes's annual profit will grow by

a$.$ $$0\mathrm{.}4$ million.

b$.$ $$1\mathrm{.}0$ million.

c$.$ $$2\mathrm{.}0$ million.