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Table 16-5
Consider the Following Duopoly Game -Refer to Table 16-5

Question 106

Multiple Choice

Table 16-5
Consider the following Duopoly game.  Firm B  U  D  Firm A  U  Firm A gets $140  Firm A get $220  Firm B gets $80  Firm B gets $160  D  Firm A gets $160  Firm A gets $80  Firm B gets $220  Firm B gets $100 \begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { U }&\text { D }\\\hline \text { Firm A }&\text { U }&\text { Firm A gets \$140 } & \text { Firm A get \$220 } \\&& \text { Firm B gets \$80 } & \text { Firm B gets \$160 } \\\hline &\text { D }&\text { Firm A gets \$160 } & \text { Firm A gets \$80 } \\&&\text { Firm B gets \$220 } & \text { Firm B gets \$100 } \\\hline\end{array}
-Refer to Table 16-5.If both firms follow a dominant strategy, firm A's profits (losses) will be:


A) $140
B) $220
C) -$160
D) -$80

Correct Answer:

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