Multiple Choice
Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a one-time simultaneous game,
A) both firms have a dominant strategy to add pizza to their menu.
B) both firms have a dominant strategy to not add pizza to their menu.
C) a Nash equilibrium occurs either when both add pizza or both do not add pizza.
D) neither firm has a dominant strategy.
Correct Answer:
Verified
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