Solved

Gin and Rummy,producers of Skateboards,have to Decide How Much to Charge

Question 181

Multiple Choice

Gin and Rummy,producers of skateboards,have to decide how much to charge for their boards.Assume that the strategies are to charge a low price ($200) or a high price ($400) .The profits appear in the following payoff matrix:
Gin and Rummy,producers of skateboards,have to decide how much to charge for their boards.Assume that the strategies are to charge a low price ($200)  or a high price ($400) .The profits appear in the following payoff matrix:   What is the dominant strategy equilibrium? A)  Gin charges the low price,and Rummy charges the low price B)  Gin charges the high price,and Rummy charges the low price C)  Gin charges the low price,and Rummy charges the high price D)  Gin charges the high price,and Rummy charges the high price E)  Gin charges the high price no matter the price charged by Rummy
What is the dominant strategy equilibrium?


A) Gin charges the low price,and Rummy charges the low price
B) Gin charges the high price,and Rummy charges the low price
C) Gin charges the low price,and Rummy charges the high price
D) Gin charges the high price,and Rummy charges the high price
E) Gin charges the high price no matter the price charged by Rummy

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents