Use the table below to answer the following questions.
Table 15.2.5

-Refer to Table 15.2.5. Two software firms have developed an identical new software application. They are debating whether to give the new application away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. What is Firm 1's best strategy?
A)Give away the application regardless of what Firm 2 does.
B)Sell the application at $30 a copy regardless of what Firm 2 does.
C)Give away the application only if Firm 2 sells the application.
D)Give away the application only if Firm 2 gives away the application.
E)Sell the application only if Firm 2 sells the application.

Question

Use the table below to answer the following questions.
Table 15.2.5
 
-Refer to Table 15.2.5. Two software firms have developed an identical new software application. They are debating whether to give the new application away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. What is Firm 1's best strategy?
A)Give away the application regardless of what Firm 2 does. 
B)Sell the application at $30 a copy regardless of what Firm 2 does. 
C)Give away the application only if Firm 2 sells the application. 
D)Give away the application only if Firm 2 gives away the application. 
E)Sell the application only if Firm 2 sells the application.

Quizplus · Accepted Answer

The Answer of Use the table below to answer the following questions.
Table 15.2.5
 
-Refer to Table 15.2.5. Two software firms have developed an identical new software application. They are debating whether to give the new application away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. What is Firm 1's best strategy?
A)Give away the application regardless of what Firm 2 does. 
B)Sell the application at $30 a copy regardless of what Firm 2 does. 
C)Give away the application only if Firm 2 sells the application. 
D)Give away the application only if Firm 2 gives away the application. 
E)Sell the application only if Firm 2 sells the application.

Use the Table Below to Answer the Following Questions