Use the following table to answer the question : Table 15-3: 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.

-Refer to Table 15-3.What is Abbott's dominant strategy?
A)Abbott does not have a dominant strategy.
B)Abbott's dominant strategy is selling at a high price.
C)Abbott's dominant strategy is selling at a low price.
D)Abbott's dominant strategy is selling at a medium price.

Question

Use the following table to answer the question : Table 15-3: 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.

-Refer to Table 15-3.What is Abbott's dominant strategy?

-Refer to Table 15-3.What is Abbott's dominant strategy?
A)Abbott does not have a dominant strategy. 
B)Abbott's dominant strategy is selling at a high price. 
C)Abbott's dominant strategy is selling at a low price. 
D)Abbott's dominant strategy is selling at a medium price.

Quizplus · Accepted Answer

A dominant strategy is one that results in the highest payoff for a player, regardless of what the other player does. Without the specific details from Table 15-3, it's impossible to determine Abbott's dominant strategy, so the statement that Abbott does not have a dominant strategy is chosen by default.

Use the Following Table to Answer the Question : Table