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.

-Refer to Table 15-2.Which of the following is true?
A)Company A's dominant strategy is to set a high price.
B)Company A's dominant strategy is to set a medium price.
C)Company A's dominant strategy is to set a low price.
D)Company A does not have a dominant strategy.

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.

-Refer to Table 15-2.Which of the following is true?

-Refer to Table 15-2.Which of the following is true?
A)Company A's dominant strategy is to set a high price. 
B)Company A's dominant strategy is to set a medium price. 
C)Company A's dominant strategy is to set a low price. 
D)Company A does not have a dominant strategy.

Quizplus · Accepted Answer

Without seeing Table 15-2, we can't analyze the specific payoffs to determine Company A's dominant strategy. However, the correct answer is based on the premise that if one of the other options (A, B, or C) were definitively true, it would imply specific information about the table's contents. Since we can't confirm those details, stating that Company A does not have a dominant strategy is a safe conclusion without access to the table. A dominant strategy exists when a strategy is best for a player, regardless of what the other player does. Without the table, we cannot ascertain this, hence the conclusion.

Use the Following Table to Answer the Question : Table