-The above figure shows the payoff to two airlines,A and B,of serving a particular route.What is Firm A's best response if Firm B decides to enter?
A) Firm A does not have a best response strategy.
B) Firm A chooses to enter.
C) Firm A chooses do not enter.
D) Both enter and do not enter are best responses for firm A.

Question

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.What is Firm A's best response if Firm B decides to enter?
A) Firm A does not have a best response strategy. 
B) Firm A chooses to enter. 
C) Firm A chooses do not enter. 
D) Both enter and do not enter are best responses for firm A.

Quizplus · Accepted Answer

If Firm B decides to enter, Firm A's best response is to also enter to maximize its payoff.

-The Above Figure Shows the Payoff to Two Airlines,A and B,of