-Figure 12.2 shows the decision tree for setting price for the only two firms in a market.How many dominant strategies are there for firm A?
A) 0
B) 1
C) 2
D) It cannot be determined without knowing what firm B does.

Question

-Figure 12.2 shows the decision tree for setting price for the only two firms in a market.How many dominant strategies are there for firm A?
A) 0 
B) 1 
C) 2 
D) It cannot be determined without knowing what firm B does.

Quizplus · Accepted Answer

A dominant strategy is one that results in the highest payoff for a player, no matter what the other player does. The question asks about firm A's dominant strategies, and typically, a firm can have at most one dominant strategy in a given game.