Table 16-4
Consider the following Duopoly game.

-Refer to Table 16-4. If both firms follow a dominant strategy, firm B's profits (losses) will be:

Question

Table 16-4
Consider the following Duopoly game.
 
-Refer to Table 16-4. If both firms follow a dominant strategy, firm B's profits (losses) will be:

Quizplus · Accepted Answer

In the game, if both firms follow their dominant strategy, Firm A will choose to produce 4 units and Firm B will choose to produce 2 units. 
In this scenario, Firm A's profit will be (4-2)*$5 = $10 and Firm B's profit will be (2-4)*$6 = -$12. 
Therefore, the correct answer is B) -$12.

Table 16-4 Consider the Following Duopoly Game