3. As a coffee shop owner in a small town, you face a significant decision regarding your business strategy, and it's crucial to make an informed choice. Your competitor, another coffee shop owner in the town, is also pondering the same decision. Here's the situation: If both you and your competitor choose to expand your businesses, there will be increased competition, resulting in a slight decrease in profits for both of you. If one of you chooses to expand while the other chooses to maintain the status quo, the one who expands will gain significant profits, while the other will lose some business but maintain a decent profit. If both you and your competitor choose to maintain the status quo, you will continue to earn your usual profits without any additional costs. Neither you nor your competitor can communicate during this process, and your decisions are independent of each other. What strategy would you select in this business scenario, and what factors influence your choice? How do you predict your competitor will decide, and what outcomes do you anticipate for both of your coffee shops? Please provide your reasoning, considering the potential consequences of your choices in this business context.