-The above figure shows a payoff matrix for two firms,A and B,that must choose between a high-price strategy and a low-price strategy.For firm A,
A)setting a low price is the dominant strategy.
B)setting a high price is the dominant strategy.
C)setting a high price when firm B sets a high price,and setting a low price when firm B sets a low price is the dominant strategy.
D)setting a high price when firm B sets a low price,and setting a low price when firm B sets a high price is the dominant strategy.

Question

-The above figure shows a payoff matrix for two firms,A and B,that must choose between a high-price strategy and a low-price strategy.For firm A,
A)setting a low price is the dominant strategy. 
B)setting a high price is the dominant strategy. 
C)setting a high price when firm B sets a high price,and setting a low price when firm B sets a low price is the dominant strategy. 
D)setting a high price when firm B sets a low price,and setting a low price when firm B sets a high price is the dominant strategy.

Quizplus · Accepted Answer

Setting a low price is the dominant strategy for firm A because it gives firm A a higher payoff regardless of the strategy chosen by firm B.

-The Above Figure Shows a Payoff Matrix for Two Firms,A