-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?
A) Firm A has a dominant strategy.
B) Firm B has a dominant strategy.
C) Neither firm entering is a Nash equilibrium.
D) The outcome of the game is unpredictable.

Question

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?
A) Firm A has a dominant strategy. 
B) Firm B has a dominant strategy. 
C) Neither firm entering is a Nash equilibrium. 
D) The outcome of the game is unpredictable.

Quizplus · Accepted Answer

Firm A has a dominant strategy if, regardless of what Firm B decides, it has a better or at least equal payoff for a specific action compared to its other options. In this scenario, without the figure, we can't analyze the specific payoffs, but the assertion that Firm A has a dominant strategy implies that for every possible action of Firm B, there is at least one action of Firm A that consistently yields a better or equal outcome, making it the dominant strategy.

-The Above Figure Shows the Payoff to Two Airlines,A and B,of