Question: Table 14-4 Alpha Offer Don't offer Alpha ears Alpha ears Offer $60,000 $20,000 Beta earns Beta earns $60,000 $100.000 Beta Alpha earns Alpha earns Don't


Table 14-4 Alpha Offer Don't offer Alpha ears Alpha ears Offer $60,000 $20,000 Beta earns Beta earns $60,000 $100.000 Beta Alpha earns Alpha earns Don't $100,000 $80,000 offer Beta ears Beta earns $20,000 $80,000 Alpha and Beta are the only firms selling gyros in the upscale town of Delphi. Each firm must decide on whether to offer a discount to students to compete for customers. If one firm offers a discount but the other does not, then the firm that offers the discount will increase its profit. Table 14-4 shows the payoff matrix for this game. Refer to Table 14-4. If Alpha assumes that Beta would offer a student discount, what should it do? O Alpha should not offer a student discount. Alpha should wait at least a year to see if Beta stops offering a student discount before making a decision Alpha should also offer a student discount O Being a duopolist, Alpha is not affected by Beta's choices because it has a secure 50 percent market share
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