If Best Paints and Paint with Us are competing in a duopoly and it is always best for Best Paints to charge a price of $20 per gallon of paint regardless of the price Paint with Us charges, then charging $20 is ________for Best Paints.
A)a dominant and pure strategy
B)a dominant, but not pure strategy
C)neither a dominant nor pure strategy
D)a pure, but not dominant strategy

Question

Quizplus · Accepted Answer

A dominant strategy is one that is always the best choice for a player, regardless of the choices made by other players. In this case, regardless of the price charged by Paint with Us, it is always best for Best Paints to charge $20 per gallon of paint. Therefore, charging $20 is a dominant strategy for Best Paints. Additionally, since it is the only strategy that is always the best choice for Best Paints, it is also a pure strategy.

If Best Paints and Paint with Us Are Competing in a Duopoly