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

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

Quizplus · Accepted Answer

According to the pay-off matrix, if Carolina Reaper produces a low quantity, Antojito's best response is to produce a high quantity to gain the highest payoff. Therefore, the best response for Antojito is to choose option B, i.e., high quantity.