A dominant strategy exists when it is:
A) suboptimal for a firm to choose that strategy regardless of what its rival does.
B) optimal for a firm to choose that strategy regardless of what its rival does.
C) optimal for a firm to choose an other strategy regardless of what its rival does.
D) suboptimal for a firm to choose an other strategy regardless of what its rival does.

Question

Quizplus · Accepted Answer

A dominant strategy exists when it is optimal for a firm to choose that strategy regardless of what its rival does. This means that no matter what strategy the rival chooses, the firm will always be better off choosing its dominant strategy. Therefore, option B is correct.

A Dominant Strategy Exists When It Is