Solved

Answer the Question Based on the Payoff Matrix for a Duopoly

Question 324

Multiple Choice

  Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If both firms choose their strategies simultaneously, then A) firm A's dominant strategy is to open a coffee shop. B) there is no Nash equilibrium for this game. C) firm B's dominant strategy is to not open a coffee shop. D) both firms have a dominant strategy to not open a coffee shop. Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If both firms choose their strategies simultaneously, then


A) firm A's dominant strategy is to open a coffee shop.
B) there is no Nash equilibrium for this game.
C) firm B's dominant strategy is to not open a coffee shop.
D) both firms have a dominant strategy to not open a coffee shop.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents