The table given below represents the payoff matrix of firms A and B,when they choose to produce low or high output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.
-Given the information in Table 14-2,which of the following can be concluded about the strategies of the two firms?
A)Firm A's dominant strategy is to produce high output,while Firm B's dominant strategy is to produce low output.
B)Firm A's dominant strategy is to produce low output,while Firm B's dominant strategy is to produce high output.
C)Firm A's dominant strategy is to produce low output,while Firm B does not have a dominant strategy.
D)Firm A's dominant strategy is to produce high output,while Firm B does not have a dominant strategy.

Question

The table given below represents the payoff matrix of firms A and B,when they choose to produce low or high output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs. 
-Given the information in Table 14-2,which of the following can be concluded about the strategies of the two firms?
A)Firm A's dominant strategy is to produce high output,while Firm B's dominant strategy is to produce low output. 
B)Firm A's dominant strategy is to produce low output,while Firm B's dominant strategy is to produce high output. 
C)Firm A's dominant strategy is to produce low output,while Firm B does not have a dominant strategy. 
D)Firm A's dominant strategy is to produce high output,while Firm B does not have a dominant strategy.

Quizplus · Accepted Answer

Firm A's dominant strategy is to produce high output regardless of Firm B's actions, while Firm B's best response depends on Firm A's choice, indicating Firm B does not have a dominant strategy.

The Table Given Below Represents the Payoff Matrix of Firms