Table 17-7
Two companies, Wonka and Gekko, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies.

-Refer to Table 17-7. The dominant strategy for Wonka is to
A)produce a good quality product, and the dominant strategy for Gekko is to produce a good quality product.
B)produce a good quality product, and the dominant strategy for Gekko is to produce a poor quality product.
C)produce a poor quality product, and the dominant strategy for Gekko is to produce a good quality product.
D)produce a poor quality product, and the dominant strategy for Gekko is to produce a poor quality product.

Question

Table 17-7
Two companies, Wonka and Gekko, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies.
 
-Refer to Table 17-7. The dominant strategy for Wonka is to
A)produce a good quality product, and the dominant strategy for Gekko is to produce a good quality product. 
B)produce a good quality product, and the dominant strategy for Gekko is to produce a poor quality product. 
C)produce a poor quality product, and the dominant strategy for Gekko is to produce a good quality product. 
D)produce a poor quality product, and the dominant strategy for Gekko is to produce a poor quality product.

Quizplus · Accepted Answer

Without access to Table 17-7, the correct answer cannot be determined based on the information provided. However, the choice suggests that both Wonka and Gekko have dominant strategies to produce good quality products, implying that doing so would yield the best outcome for each, regardless of the other's actions.

Table 17-7 Two Companies, Wonka and Gekko, Each Decide Whether to Produce