Zippy's and Tony's are rival pizza restaurants in a small town (together they form a local duopoly).Zippy's management determines that if it increases its advertising expenditures,it will increase profits regardless of whether Tony's increases its advertising budget.Based on this information,we can conclude that:

Question

Quizplus · Accepted Answer

If Zippy's management determines that increasing its advertising expenditures will increase profits regardless of whether Tony's increases its advertising budget, then Zippy's has a dominant strategy in this game. A dominant strategy is a strategy that is the best for a player, no matter what the other player does. Therefore, Zippy's would always choose to increase its advertising budget, regardless of whether Tony's does or not.

Zippy's and Tony's Are Rival Pizza Restaurants in a Small