University Subs and Subway are the only two sandwich shops in the city. If either runs a special 2-for-1 promotion, both are able to keep their prices high and earn $10,000 a month. However, when both don't run promotions, either profits fall to $1000. Finally, if one runs a promotion and other does not, the shop that runs promotion earns a profit of $15,000 and the other loses $5000. a. Construct a payoff matrix for this game and represent the game in normal form
b. What is the dominant strategy for Subway? What should it do? c. If any what is the equilibrium in the game?

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above