(Figure: Payoff Matrix for Antojito and Carolina Reaper) Use Figure: Payoff Matrix for Antojito and Carolina Reaper. The BEST response for Carolina Reaper is:

A)low quantity.
B)high quantity.
C)adopt the same strategy as Antojito.
D)Carolina Reaper does not have a best response.

Question

(Figure: Payoff Matrix for Antojito and Carolina Reaper) Use Figure: Payoff Matrix for Antojito and Carolina Reaper. The BEST response for Carolina Reaper is:
​
 
A)low quantity. 
B)high quantity. 
C)adopt the same strategy as Antojito. 
D)Carolina Reaper does not have a best response.

Quizplus · Accepted Answer

The best response for Carolina Reaper is high quantity because it results in the highest payoff for Carolina Reaper no matter what strategy Antojito chooses. Specifically, if Antojito chooses low quantity, Carolina Reaper's payoff is 4 with high quantity and 2 with low quantity. If Antojito chooses high quantity, Carolina Reaper's payoff is 10 with high quantity and 8 with low quantity. Therefore, Carolina Reaper should always choose high quantity for the best outcome.