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 B's dominant strategy is to set a high price.
B)Company B's dominant strategy is to set a medium price.
C)Company B's dominant strategy is to set a low price.
D)Company B 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 B's dominant strategy is to set a high price. 
B)Company B's dominant strategy is to set a medium price. 
C)Company B's dominant strategy is to set a low price. 
D)Company B does not have a dominant strategy.

Quizplus · Accepted Answer

Without access to Table 15-2, we cannot analyze the specific payoffs to determine Company B's dominant strategy. However, the concept of a dominant strategy refers to a strategy that is the best choice for a player, regardless of what the other player(s) decide to do. If the question asserts that one of the strategies (high, medium, or low price) is dominant without providing the specific payoffs, it's impossible to confirm without the table. Therefore, stating that Company B does not have a dominant strategy is a safe conclusion in the absence of specific data.

Use the Following Table to Answer the Question : Table