Use the following table to answer the question : Table 15-2: payoff matrix shows the profits accruing to two firms,Company A and Company B,under different pricing strategies.In each cell,the figure on the left indicates Company A's payoff and the figure on the right indicates Company B's payoff.

-In Table 15-2,company B's strategy of choosing a _____ price is iteratively dominated by a strategy of _____ price.
A)low;high
B)medium;high
C)medium;low
D)high;low

Question

Use the following table to answer the question : Table 15-2: payoff matrix shows the profits accruing to two firms,Company A and Company B,under different pricing strategies.In each cell,the figure on the left indicates Company A's payoff and the figure on the right indicates Company B's payoff.

-In Table 15-2,company B's strategy of choosing a _____ price is iteratively dominated by a strategy of _____ price.

-In Table 15-2,company B's strategy of choosing a _____ price is iteratively dominated by a strategy of _____ price.
A)low;high 
B)medium;high 
C)medium;low 
D)high;low

Quizplus · Accepted Answer

Company B's strategy of choosing a low price is iteratively dominated by a strategy of high price because if Company A chooses a high price, Company B will earn more profit by choosing a high price as well.

Use the Following Table to Answer the Question : Table