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Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Davy Crockett figurines in San Antonio.Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month.For both Gehrig and Gabriel,the dominant strategy is to:
A)produce 5,000 figurines.
B)produce 7,000 figurines.
C)produce between 5,000 and 7,000 figurines.
D)collude and increase production to more than 14,000 figurines.

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Use the following to answer question:
Figure: Payoff Matrix for Gehrig and Gabriel 
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Davy Crockett figurines in San Antonio.Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month.For both Gehrig and Gabriel,the dominant strategy is to:
A)produce 5,000 figurines. 
B)produce 7,000 figurines. 
C)produce between 5,000 and 7,000 figurines. 
D)collude and increase production to more than 14,000 figurines.

Quizplus · Accepted Answer

Producing 7,000 figurines is the dominant strategy for both Gehrig and Gabriel according to the payoff matrix. It results in the highest payoff for each individual regardless of the other's choice of strategy.

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