The market for bagels in Charlottetown,PEI contains two firms: BagelWorld (BW)and Bagels'R'Us (BRU).The owners of the two firms decide to fix the price of bagels.The table shows the total revenue the firms will collect if they abide by the price-setting agreement or if they cheat on the agreement.
-Based on the payoff matrix above,Bagels 'R' Us finds that __________ is its __________.
A) abiding by the agreement;dominated strategy
B) cheating on the agreement;dominated strategy
C) abiding by the agreement;dominant strategy
D) either cheating or abiding;dominant strategy
E) neither cheating nor abiding;dominant strategy

Question

The market for bagels in Charlottetown,PEI contains two firms: BagelWorld (BW)and Bagels'R'Us (BRU).The owners of the two firms decide to fix the price of bagels.The table shows the total revenue the firms will collect if they abide by the price-setting agreement or if they cheat on the agreement. 
-Based on the payoff matrix above,Bagels 'R' Us finds that __________ is its __________.
A) abiding by the agreement;dominated strategy 
B) cheating on the agreement;dominated strategy 
C) abiding by the agreement;dominant strategy 
D) either cheating or abiding;dominant strategy 
E) neither cheating nor abiding;dominant strategy

Quizplus · Accepted Answer

The Answer of The market for bagels in Charlottetown,PEI contains two firms: BagelWorld (BW)and Bagels'R'Us (BRU).The owners of the two firms decide to fix the price of bagels.The table shows the total revenue the firms will collect if they abide by the price-setting agreement or if they cheat on the agreement. 
-Based on the payoff matrix above,Bagels 'R' Us finds that __________ is its __________.
A) abiding by the agreement;dominated strategy 
B) cheating on the agreement;dominated strategy 
C) abiding by the agreement;dominant strategy 
D) either cheating or abiding;dominant strategy 
E) neither cheating nor abiding;dominant strategy

The Market for Bagels in Charlottetown,PEI Contains Two Firms: BagelWorld