Consider the information below when answering the following question(s):

Exhibit 13-1

PIZZA SPINNERS' CHOICE

SIX

SEVEN

Harry's

$550

$750

SIX

$700

$100

Harry's

$120

$370

SEVEN

$640

$350

(Note: Payoffs in the upper right corner go to Pizza Spinners and payoffs in the lower left go toHarry's).

a.In choosing whether to deliver to six or seven neighborhoods, Pizza Spinners has to take into account not only its own costs, but also the delivery area response of its competitor Harry's Pizzeria. If the payoffs per week from delivering in six and seven neighborhoods are as displayed in Exhibit 13-1, what will Pizza Spinner's choose and why?