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Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix.

Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix. O a. Your Competitor B N S Вг 1,5001 You N 1,500 sl-1,500 -1,500 b. Your Competitor В N В г 1,500 1,500] You N -1,500 sl-1,500 -1,500 1,500 Your Competitor В N С. В г 1,500 You N 1,500 1,500. O d. Your Competitor B N S B -1,500 1 -1,500 You N sl1,500 1,500 Your Competitor е. B N Вг-1,500 You N -1,500 SL -1,500]
Transcribed Image Text:Your fast-food outlet, Burger Queen, has obtained a license to open branches in three closely situated South African cities: Brakpan, Nigel, and Springs. Your market surveys show that Brakpan and Nigel each provide a potential market of 2,500 burgers a day, while Springs provides a potential market of 1,000 burgers per day. Your company can only finance an outlet in one of those cities at the present time. Your main competitor, Burger Princess, has also obtained licenses for these cities, and is similarly planning to open only one outlet. If you both happen to locate at the same city, you will share the total business from all three cities equally, but if you locate in different cities, you will each get all the business in the cities in which you have located, plus half the business in the third city. The payoff is the number of burgers you will sell per day minus the number of burgers your competitor will sell per day. Set up the payoff matrix. O a. Your Competitor B N S Вг 1,5001 You N 1,500 sl-1,500 -1,500 b. Your Competitor В N В г 1,500 1,500] You N -1,500 sl-1,500 -1,500 1,500 Your Competitor В N С. В г 1,500 You N 1,500 1,500. O d. Your Competitor B N S B -1,500 1 -1,500 You N sl1,500 1,500 Your Competitor е. B N Вг-1,500 You N -1,500 SL -1,500]
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