Refer to the above payoff matrix for the profits (in $ millions)of two firms (X and Y)making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?
A)Both firm X and firm Y choose not to advertise.
B)Both firm X and firm Y choose to advertise.
C)Firm X chooses to advertise while firm Y chooses not to advertise.
D)Firm X chooses not to advertise while firm Y chooses to advertise.

Question

Refer to the above payoff matrix for the profits (in $ millions)of two firms (X and Y)making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?
A)Both firm X and firm Y choose not to advertise. 
B)Both firm X and firm Y choose to advertise. 
C)Firm X chooses to advertise while firm Y chooses not to advertise. 
D)Firm X chooses not to advertise while firm Y chooses to advertise.

Quizplus · Accepted Answer

The Answer of  Refer to the above payoff matrix for the profits (in $ millions)of two firms (X and Y)making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?
A)Both firm X and firm Y choose not to advertise. 
B)Both firm X and firm Y choose to advertise. 
C)Firm X chooses to advertise while firm Y chooses not to advertise. 
D)Firm X chooses not to advertise while firm Y chooses to advertise.

Refer to the Above Payoff Matrix for the Profits (In