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QUESTION 2 Two home-improvement stores (Lowes and Home Depot) in a growing urban area are interested in expanding their market share. Both are interested in

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QUESTION 2 Two home-improvement stores (Lowes and Home Depot) 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. Lowes Increase the size of store Do not increase the size of and parking lot store and parking lot Increase the size of store and Lowes = $1.0 million Lowes = $0.4 million Home Depot = $3.4 million Home Depot parking lot Home Depot = $1.5 million Do not increase the size of store Lowes = $3.2 million Lowes = $2.00 million Home Depot = $0.6 million and parking lot Home Depot = $2.5 million Refer to Table 17-13. Increasing the size of its store and parking lot is a dominant strategy for O a. Lopes, but not for HomeMax. O b. neither store. c. both stores O d. HomeMax, but not for Lopes

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