-Refer to Figure 2.7, which summarizes the payoffs in thousands of dollars to two firms ina duopolistic industry arising from alternative pricing strategies. Assume that this is asimultaneous-move, non-cooperative, one-time game. Which firm has a strictly dominant strategy?
A) Firm A
B) Firm B
C) Both firms
D) Neither firm

Question

-Refer to Figure 2.7, which summarizes the payoffs in thousands of dollars to two firms ina duopolistic industry arising from alternative pricing strategies. Assume that this is asimultaneous-move, non-cooperative, one-time game. Which firm has a strictly dominant strategy?
A) Firm A 
B) Firm B 
C) Both firms 
D) Neither firm

Quizplus · Accepted Answer

Both firms have a strictly dominant strategy of pricing high.