The table given below shows the payoffs to Firm A and Firm B if they choose to produce either high output or low output.In each cell,the figure on the left indicates Firm A's payoffs and the figure on the right indicates Firm B's payoffs.
-With reference to the payoff matrix in Table 14-1,which firm has a dominant strategy?
A)Firm A only
B)Firm B only
C)Both Firm A and Firm B
D)Neither firm has a dominant strategy

Question

The table given below shows the payoffs to Firm A and Firm B if they choose to produce either high output or low output.In each cell,the figure on the left indicates Firm A's payoffs and the figure on the right indicates Firm B's payoffs. 
-With reference to the payoff matrix in Table 14-1,which firm has a dominant strategy?
A)Firm A only 
B)Firm B only 
C)Both Firm A and Firm B 
D)Neither firm has a dominant strategy

Quizplus · Accepted Answer

Both Firm A and Firm B have a dominant strategy if each firm has a strategy that results in a higher payoff regardless of the other firm's actions.

The Table Given Below Shows the Payoffs to Firm a and Firm