Table 17-15.This table shows a game played between two firms,Firm A and Firm B.In this game each firm must decide how much output (Q)to produce: 2 units or 3 units.The profit for each firm is given in the table as (Profit for Firm A,Profit for Firm B).

-Refer to Table 17-15.In this game,

Question

Table 17-15.This table shows a game played between two firms,Firm A and Firm B.In this game each firm must decide how much output (Q)to produce: 2 units or 3 units.The profit for each firm is given in the table as (Profit for Firm A,Profit for Firm B).
 
-Refer to Table 17-15.In this game,

Quizplus · Accepted Answer

A dominant strategy is a strategy that is best for a player regardless of the other player's strategy. In this case, neither firm has a dominant strategy because the optimal choice is dependent on the other firm's choice. For example, if Firm A chooses to produce 2 units, the best choice for Firm B is to produce 3 units, and vice versa. Therefore, neither player can make a decision that will guarantee the highest profit without knowing the other player's decision.