-Brian and Matt own the only two bicycle repair shops in town.Each must choose between a low price for repair work and a high price.The yearly economic profits from each strategy are indicated in Figure 11-12.The upper right side of each rectangle shows Brian's profits;the lower left side shows Matt's profits.Which of the following statements is correct?
A)Matt's dominant strategy is to charge a low price.
B)Brian's dominant strategy is to charge a high price.
C)The dominant strategy for both Brian and Matt is to charge a low price.
D)Matt's dominant strategy is to charge a high price.
E)Neither Brian nor Matt has a dominant strategy.

Question

-Brian and Matt own the only two bicycle repair shops in town.Each must choose between a low price for repair work and a high price.The yearly economic profits from each strategy are indicated in Figure 11-12.The upper right side of each rectangle shows Brian's profits;the lower left side shows Matt's profits.Which of the following statements is correct?
A)Matt's dominant strategy is to charge a low price. 
B)Brian's dominant strategy is to charge a high price. 
C)The dominant strategy for both Brian and Matt is to charge a low price. 
D)Matt's dominant strategy is to charge a high price. 
E)Neither Brian nor Matt has a dominant strategy.

Quizplus · Accepted Answer

Matt's profit is higher if he charges a low price, regardless of what Brian does.

-Brian and Matt Own the Only Two Bicycle Repair Shops