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Two competing coffee shops, The Daily Grind and Brew & Co., are deciding on a daily promotion. The table below shows the daily profit (in dollars) for each shop based on the combination of strategies they choose. The first number in each pair is The Daily Grind's profit, and the second is Brew & Co.'s profit.

Payoff Matrix:

Brew & Co: Latte DiscountBrew & Co: Muffin ComboBrew & Co: No Special
Grind: Latte Discount($100, $100)($150, $80)($160, $90)
Grind: Muffin Combo($110, $140)($120, $120)($200, $50)
Grind: No Special($80, $220)($180, $180)($140, $140)

Match each of Brew & Co.'s potential strategies to The Daily Grind's best response to maximize its own profit.

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Updated 2025-07-22

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