-Refer to Figure 12.8.If both firms follow their dominant strategies,Firm B will earn profits equal to

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Firm B's dominant strategy is to follow an action that maximizes its payoff regardless of what Firm A does. If both firms follow their dominant strategies, it typically leads to a Nash Equilibrium where neither firm has an incentive to deviate from their chosen strategy. Without seeing Figure 12.8, we can infer that if Firm B's profit is $200 when both firms follow their dominant strategies, this outcome is a result of the strategic interaction described in the figure, likely leading to a Nash Equilibrium.