Abbott and Costello are two firms that compete with each other in the market for ice-cream.They can price their product at a high,medium,or low price.The following matrix shows their profits from their respective pricing strategies.
Table 15-3
-Refer to Table 15-3.What is the highest payoff in Costello's dominated strategy?
A)$107
B)$115
C)$100
D)$21

Question

Abbott and Costello are two firms that compete with each other in the market for ice-cream.They can price their product at a high,medium,or low price.The following matrix shows their profits from their respective pricing strategies.
Table 15-3 
-Refer to Table 15-3.What is the highest payoff in Costello's dominated strategy?
A)$107 
B)$115 
C)$100 
D)$21

Quizplus · Accepted Answer

Costello's dominated strategy is to play Row 1. The highest payoff in Row 1 is $107.

Abbott and Costello Are Two Firms That Compete with Each