Scenario: Payoff Matrix for Firms X and Y The following payoff matrix depicts the profits for firms X and Y, which are trying to decide whether to choose a high or low price in their competitive strategy with each other.They are the only two firms in this oligopolistic industry.
(Scenario: Payoff Matrix for Firms X and Y) In the scenario Payoff Matrix for Firms X and Y, if Firm Y were to choose its dominant strategy, it would:
A) choose a low price.
B) choose a high price.
C) encounter a dilemma, since there are two dominant strategies.
D) allow firm X to dominate the industry.
Correct Answer:
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