(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve and Savannah wish to maximize their joint profits:

A)each firm should choose its best response.
B)Savannah should choose a best response, and Steve should not.
C)each should consider its specific situation before choosing a strategy, since strategies also entail costs.
D)each should choose a strategy other than the best response.

Question

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve and Savannah wish to maximize their joint profits:
​
​
 
A)each firm should choose its best response. 
B)Savannah should choose a best response, and Steve should not. 
C)each should consider its specific situation before choosing a strategy, since strategies also entail costs. 
D)each should choose a strategy other than the best response.

Quizplus · Accepted Answer

The Answer of (Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve and Savannah wish to maximize their joint profits:
​
​
 
A)each firm should choose its best response. 
B)Savannah should choose a best response, and Steve should not. 
C)each should consider its specific situation before choosing a strategy, since strategies also entail costs. 
D)each should choose a strategy other than the best response.