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Scenario: Payoff Matrix for Two Firms
The following table provides the payoff matrix for two firms,firm A and firm B.They are the only two firms in the industry and can either compete or cooperate with each other,with the following profit results reflecting their actions.
-(Scenario: Payoff Matrix for Two Firms)Use Scenario: Payoff Matrix for Two Firms.If both firms pursue their dominant strategies:

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Use the following to answer questions :
Scenario: Payoff Matrix for Two Firms
The following table provides the payoff matrix for two firms,firm A and firm B.They are the only two firms in the industry and can either compete or cooperate with each other,with the following profit results reflecting their actions. 
-(Scenario: Payoff Matrix for Two Firms)Use Scenario: Payoff Matrix for Two Firms.If both firms pursue their dominant strategies:

Quizplus · Accepted Answer

Pursuing dominant strategies means that both firms choose the strategies that benefit them the most regardless of the actions of the other firm. In this case, the dominant strategy for firm A is to compete and for firm B is to cooperate. If both firms pursue their dominant strategies, firm A will earn 4 units of profit and firm B will earn 6 units of profit. Their joint profits of 10 units are the maximum possible given the payoff matrix, so A) their joint profits are maximized.

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