Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies.
-Refer to Figure 17-5. The dominant strategy for ABC is to

Question

Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. 
-Refer to Figure 17-5. The dominant strategy for ABC is to

Quizplus · Accepted Answer

In a typical prisoner's dilemma scenario, both firms have a dominant strategy to charge a low price to maximize their own payoff, leading to a suboptimal outcome for both.