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
Correct Answer:
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