The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when they advertise and when they do not advertise.Table 12.1

-According to Table 12.1, if both the firms follow their dominant strategies,:
A)firm X earns $100 and firm Y earns $150.
B)firm X earns $50 and firm Y earns $200.
C)firm X earns $180 and firm Y earns $150.
D)firm X earns $180 and firm Y earns $100.
E)firm X earns $150 and firm Y earns $180.

Question

The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when they advertise and when they do not advertise.Table 12.1
 
-According to Table 12.1, if both the firms follow their dominant strategies,:
A)firm X earns $100 and firm Y earns $150. 
B)firm X earns $50 and firm Y earns $200. 
C)firm X earns $180 and firm Y earns $150. 
D)firm X earns $180 and firm Y earns $100. 
E)firm X earns $150 and firm Y earns $180.

Quizplus · Accepted Answer

Firm X earns $100 and firm Y earns $150 if both firms follow their dominant strategies.

The Following Table Shows the Payoff Matrix of the Two