Scenario: Two rival firms have to choose between two strategies to maximize their benefits. The two alternative strategies available are Strategy X and Strategy Y. The matrix below shows the respective payoffs for each strategy chosen by the firms. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.

-Refer to the scenario above.Which of the following is true in this case?
A) Firm A's dominant strategy is to choose Strategy X.
B) Firm B's dominant strategy is to choose Strategy Y.
C) Firm A will choose strategy X if Firm B chooses Strategy Y.
D) Firm A will choose strategy Y if Firm B chooses Strategy Y.

Question

Scenario: Two rival firms have to choose between two strategies to maximize their benefits. The two alternative strategies available are Strategy X and Strategy Y. The matrix below shows the respective payoffs for each strategy chosen by the firms. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.
 
-Refer to the scenario above.Which of the following is true in this case?
A) Firm A's dominant strategy is to choose Strategy X. 
B) Firm B's dominant strategy is to choose Strategy Y. 
C) Firm A will choose strategy X if Firm B chooses Strategy Y. 
D) Firm A will choose strategy Y if Firm B chooses Strategy Y.

Quizplus · Accepted Answer

The Answer of Scenario: Two rival firms have to choose between two strategies to maximize their benefits. The two alternative strategies available are Strategy X and Strategy Y. The matrix below shows the respective payoffs for each strategy chosen by the firms. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.
 
-Refer to the scenario above.Which of the following is true in this case?
A) Firm A's dominant strategy is to choose Strategy X. 
B) Firm B's dominant strategy is to choose Strategy Y. 
C) Firm A will choose strategy X if Firm B chooses Strategy Y. 
D) Firm A will choose strategy Y if Firm B chooses Strategy Y.

Scenario: Two Rival Firms Have to Choose Between Two Strategies