Table $1$

Two home$-$improvement 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 home$-$improvement stores are shown in the table below.

Lopes

$\backslash$table$[[$HomeMax$,$Increase the size of store and parking lot,Increase the size of store and parking lot,Do not increase the size of store and parking lot$],[$Lopes $=$$$1\mathrm{.}0$ million HomeMax $=$ $$1\mathrm{.}5$ million,$\backslash$table$[[$Lopes $=$$$0\mathrm{.}4$ million$],[$HomeMax $=$$$3\mathrm{.}4$ million$]]],[$Do not increase the size of store and parking lot,Lopes $=$$$3\mathrm{.}2$ million HomeMax $=$$$0\mathrm{.}6$ million,Lopes $=$$$2\mathrm{.}00$ million HomeMax $=$$$2\mathrm{.}5$ million$]]$

NOTE: Dominant Strategy is the strategy that is best for a participant regardless of the strategies chosen by the other participants

$31.$ Refer to Table $1.$ If both stores follow a dominant strategy, HomeMax's annual profit will grow by

a$.$ $$0\mathrm{.}6$ million.

b$.$ $$1\mathrm{.}5$ million.

c$.$ $$2\mathrm{.}5$ million.

d$.$ $$3\mathrm{.}4$ million.

$32.$Refer to Table $1.$ 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.

d$.$ $$3\mathrm{.}2$ million.

$33.$ Refer to Table $1.$ If this market was in Nash Equilibrium, the annual profit for HomeMax would

a$.$ increase by $$1\mathrm{.}5$ million

b$.$ decrease by $$1$ million

c$.$ increase by $$2\mathrm{.}5$ million

d$.$ decrease by $$2$ million