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Table 11-13 Two Rival Oligopolists in the Coffee Industry, Wide

Question 385

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Table 11-13
Table 11-13    Two rival oligopolists in the coffee industry, Wide Awake and Zuma, have to decide on their pricing strategy. Each can choose either a high price or a low price. Table 11-13 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts. -Refer to Table 11-13.Which of the following is true? A)  Wide Awake's dominant strategy is to select a low price. B)  Zuma's dominant strategy is to select a high price. C)  Wide Awake does not have a dominant strategy. D)  Zuma does not have a dominant strategy. Two rival oligopolists in the coffee industry, Wide Awake and Zuma, have to decide on their pricing strategy. Each can choose either a high price or a low price. Table 11-13 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 11-13.Which of the following is true?


A) Wide Awake's dominant strategy is to select a low price.
B) Zuma's dominant strategy is to select a high price.
C) Wide Awake does not have a dominant strategy.
D) Zuma does not have a dominant strategy.

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