Scenario: Suppose two soda brands, Mountain Dew and Mello Yello, are trying to decide whether to launch advertising campaigns for their respective products. These decisions will be taken simultaneously, the brands will not be cooperating, and we will assume each brand's strategist knows her own and her opponent's payoffs in all cases. The payoff matrix for this game is shown below.

-Refer to the scenario above.Does Mello Yello have a dominant strategy?
A) No.
B) Yes. Regardless of whether Mountain Dew chooses to advertise, Mello Yello's profits are always highest if it advertises.
C) Yes. Regardless of whether Mountain Dew chooses to advertise, Mello Yello's profits are always highest if it does not advertise.
D) Not enough information is provided to answer the question.

Question

Scenario: Suppose two soda brands, Mountain Dew and Mello Yello, are trying to decide whether to launch advertising campaigns for their respective products. These decisions will be taken simultaneously, the brands will not be cooperating, and we will assume each brand's strategist knows her own and her opponent's payoffs in all cases. The payoff matrix for this game is shown below.
 
-Refer to the scenario above.Does Mello Yello have a dominant strategy?
A) No. 
B) Yes. Regardless of whether Mountain Dew chooses to advertise, Mello Yello's profits are always highest if it advertises. 
C) Yes. Regardless of whether Mountain Dew chooses to advertise, Mello Yello's profits are always highest if it does not advertise. 
D) Not enough information is provided to answer the question.

Quizplus · Accepted Answer

The Answer is B

Scenario: Suppose Two Soda Brands, Mountain Dew and Mello Yello