Scenario: The payoff matrix given below shows the payoffs to two rival firms in millions of U.S. dollars for each strategy they choose. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.

-Refer to the scenario above.In the dominant strategy equilibrium,the payoff to Firm B is ________.
A) $1.2 million
B) $3.0 million
C) $2.5 million
D) $2 million

Question

Scenario: The payoff matrix given below shows the payoffs to two rival firms in millions of U.S. dollars for each strategy they choose. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.
 
-Refer to the scenario above.In the dominant strategy equilibrium,the payoff to Firm B is ________.
A) $1.2 million 
B) $3.0 million 
C) $2.5 million 
D) $2 million

Quizplus · Accepted Answer

In the dominant strategy equilibrium, Firm A will choose strategy B and Firm B will choose strategy Y, resulting in payoffs of $2.5 million for Firm A and $3 million for Firm B. Therefore, the payoff to Firm B is $3 million.

Scenario: the Payoff Matrix Given Below Shows the Payoffs to Two