A dominant strategy for firm one is
A)high price.
B)low price.
C)different from firm one's secure strategy.
D)low price and different from firm one's secure strategy.

Question

Quizplus · Accepted Answer

A dominant strategy for firm one is high price. This means that regardless of the strategy chosen by firm two, firm one will always have a better outcome by choosing the high price strategy. Therefore, it is in the best interest of firm one to choose a high price as their dominant strategy.

A Dominant Strategy for Firm One Is