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Use Figure: Payoff Matrix Alpha and Beta Motors III

Question 88

Multiple Choice

Use Figure: Payoff Matrix Alpha and Beta Motors III. The figure shows the payoff matrix where the hypothetical daily profits of Alpha Motor and Beta Motor (in millions of dollars) depend on each other's decision about whether to hold on to their inventories or release them at a discount at the end of the year. Based on these payoffs, which one of the following statements is true?

Figure: Payoff Matrix Alpha and Beta Motors III
Use Figure: Payoff Matrix Alpha and Beta Motors III. The figure shows the payoff matrix where the hypothetical daily profits of Alpha Motor and Beta Motor (in millions of dollars)  depend on each other's decision about whether to hold on to their inventories or release them at a discount at the end of the year. Based on these payoffs, which one of the following statements is true? ​ Figure: Payoff Matrix Alpha and Beta Motors III   A)  Neither firm has a dominant strategy. B)  Alpha Motor's dominant strategy is to release its inventory, and Beta Motor's dominant strategy is to hold its inventory. C)  Alpha Motor's dominant strategy is to hold its inventory, and Beta Motor's dominant strategy is to release its inventory. D)  The dominant strategy for Alpha Motor's is to hold its inventory, and Beta Motor does not have a dominant strategy.


A) Neither firm has a dominant strategy.
B) Alpha Motor's dominant strategy is to release its inventory, and Beta Motor's dominant strategy is to hold its inventory.
C) Alpha Motor's dominant strategy is to hold its inventory, and Beta Motor's dominant strategy is to release its inventory.
D) The dominant strategy for Alpha Motor's is to hold its inventory, and Beta Motor does not have a dominant strategy.

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