Table 15.2.8

-Refer to Table 15.2.8. Libertyville has two optometrists, Dr. Smith and Dr. Jones. Each optometrist can choose to advertise his service or not. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. Which of the following statements correctly describes Dr. Smith's strategy given what Dr. Jones may do?
A)Dr. Smith advertises no matter what Dr. Jones does.
B)Dr. Smith does not advertise no matter what Dr. Jones does.
C)Dr. Smith advertises only if Dr. Jones doesn't advertise.
D)Dr. Smith advertises only if Dr. Jones advertises.
E)Dr. Smith does not advertise if Dr. Jones advertises.

Question

Table 15.2.8
 
-Refer to Table 15.2.8. Libertyville has two optometrists, Dr. Smith and Dr. Jones. Each optometrist can choose to advertise his service or not. The incomes of each optometrist, in thousands of dollars, are given in the payoff matrix above. Which of the following statements correctly describes Dr. Smith's strategy given what Dr. Jones may do?
A)Dr. Smith advertises no matter what Dr. Jones does. 
B)Dr. Smith does not advertise no matter what Dr. Jones does. 
C)Dr. Smith advertises only if Dr. Jones doesn't advertise. 
D)Dr. Smith advertises only if Dr. Jones advertises. 
E)Dr. Smith does not advertise if Dr. Jones advertises.

Quizplus · Accepted Answer

Dr. Smith's strategy is to advertise no matter what Dr. Jones does. This is because Dr. Smith's income is higher if he advertises, regardless of what Dr. Jones does.

Table 15.2.8 -Refer to Table 15.2.8. Libertyville Has Two Optometrists, Dr. Smith