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LekaFEV [45]
3 years ago
14

Lopes Increase the size of store and parking lot Do not increase the size of store and parking lot

Business
1 answer:
Zielflug [23.3K]3 years ago
5 0

Answer:

c. $1.0 million for Lopes and by $1.5 million for HomeMax.

Explanation:

If Lopes and HomeMax both wants to maximize their profits they should choose a strategy which is beneficial for both of them. If both choose to increase the size of store and parking lot this will bring them maximum returns according to the matrix. They will be Nash equilibrium state which is a stable state.

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sales                        70,000            97000

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=$24000

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