Use the following table to answer the question : Table 14-1 : 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.

-With reference to the payoff matrix in Table 14-1,which firm has a dominant strategy?
A)Firm A only
B)Firm B only
C)Both Firm A and Firm B
D)Neither firm has a dominant strategy

Question

Use the following table to answer the question : Table 14-1 : 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.

-With reference to the payoff matrix in Table 14-1,which firm has a dominant strategy?

-With reference to the payoff matrix in Table 14-1,which firm has a dominant strategy?
A)Firm A only 
B)Firm B only 
C)Both Firm A and Firm B 
D)Neither firm has a dominant strategy

Quizplus · Accepted Answer

A dominant strategy is one that results in the highest payoff for a player, no matter what the other player does. If both Firm A and Firm B have strategies that yield the best outcome regardless of the other's actions, then both have dominant strategies.

Use the Following Table to Answer the Question : Table