Firm A is better of spending high on advertising no matter what Firm B does. We can say that Firm A has a
A) dominant strategy.
B) Nash equilibrium.
C) strategic behavior.
D) none of the above

Question

Quizplus · Accepted Answer

A dominant strategy is one that is best for a player, in this case, Firm A, regardless of what the other player, Firm B, decides to do. Since Firm A is better off spending high on advertising no matter what Firm B does, this is a clear example of a dominant strategy.

Firm a Is Better of Spending High on Advertising No