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.
-Refer to the payoff matrix in Table 14-1.Which of the following describes the dominant-strategy equilibrium in this game?
A)Both firms produce low output
B)Both firms produce high output
C)Firm A produces low output and Firm B produces high output
D)Firm A produces high output and Firm B produces low output

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. 
-Refer to the payoff matrix in Table 14-1.Which of the following describes the dominant-strategy equilibrium in this game?
A)Both firms produce low output 
B)Both firms produce high output 
C)Firm A produces low output and Firm B produces high output 
D)Firm A produces high output and Firm B produces low output

Quizplus · Accepted Answer

The Answer is B

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