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Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.For both Gehrig and Gabriel,the dominant strategy is to:
A) produce 5 000 figurines.
B) produce 7 000 figurines.
C) produce between 5 000 and 7 000 figurines.
D) collude and increase production to more than 14 000 figurines.

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Use the following to answer questions :
Figure: Payoff Matrix for Gehrig and Gabriel 
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.For both Gehrig and Gabriel,the dominant strategy is to:
A) produce 5 000 figurines. 
B) produce 7 000 figurines. 
C) produce between 5 000 and 7 000 figurines. 
D) collude and increase production to more than 14 000 figurines.

Quizplus · Accepted Answer

Both Gehrig and Gabriel's dominant strategy is to produce 7,000 figurines each month as it gives them the highest payoff regardless of what strategy the other person chooses. Therefore, the best choice for both parties is to produce 7,000 figurines.

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