-Refer to Figure 12.8.If both firms follow their dominant strategies,Firm B will earn profits equal to:

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Firm B's dominant strategy is to produce 2 units, regardless of Firm A's output. If Firm A produces 1 unit, Firm B earns profits of $200. If Firm A produces 2 units, Firm B earns profits of $200. If Firm A produces 3 units, Firm B earns profits of $100. Therefore, Firm B's dominant strategy is to produce 2 units, and it will earn profits of $200.