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Figure: Payoff Matrix II for Blue Spring and Purple Rain
-(Figure: Payoff Matrix II for Blue Spring and Purple Rain)Use Figure: Payoff Matrix II for Blue Spring and Purple Rain.The figure describes two producers of bottled water.Each has two strategies available to it: a high price and a low price.The dominant strategy for Purple Rain is to:
A)charge a low price.
B)charge a high price.
C)adopt the same strategy as Blue Spring.
D)Purple Rain does not have a dominant strategy.

Question

Use the following to answer question:
Figure: Payoff Matrix II for Blue Spring and Purple Rain 
-(Figure: Payoff Matrix II for Blue Spring and Purple Rain)Use Figure: Payoff Matrix II for Blue Spring and Purple Rain.The figure describes two producers of bottled water.Each has two strategies available to it: a high price and a low price.The dominant strategy for Purple Rain is to:
A)charge a low price. 
B)charge a high price. 
C)adopt the same strategy as Blue Spring. 
D)Purple Rain does not have a dominant strategy.

Quizplus · Accepted Answer

Purple Rain's dominant strategy is to charge a low price because it yields a better payoff regardless of Blue Spring's strategy.

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