Little kona is small business that that considers the
possibility of entering the dominated market of Big Brew. The
benefits of each of them depend on whether the first enters or not
and on whether the second sets a high or low price.
Little Kona Is Small Business That That Considers The Possibility Of Entering The Dominated Market Of Big Brew The Ben 1 (98.07 KiB) Viewed 35 times
w Little Kona es una pequeña empresa de café que está considerando la posibilidad de entrar en un mercado dominado por Big Brewer. Los beneficios de cada una de ellas dependen de que entre o no la primera y de que la segunda fije un precio alto o bajo: Big Brewer High price Low price BB gets €3 mill BB gets €1 mill Entry Little Kona gets €2 mill Little Kona loses €2 mill Little Kona BB gets BB gets €7 mill €2 mill Do Not Little Kona entre gets nothing Little Kona gets nothing
I Great Brew threatens Little Kona by telling her, "If you go in, we're going to set a low price, so the best thing you can do is not get in." Do you think Little Kona should believe the threat? Why yes or why not?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!