-Figure 12.2 shows the decision tree for setting price for the only two firms in a market.The dominant strategy for firm A

Question

Quizplus · Accepted Answer

A dominant strategy is one that is best for a player, regardless of what the other player does. In this case, for Firm A, setting the price low results in a better outcome (either through higher profit or less loss) regardless of Firm B's actions, making it the dominant strategy.