The dominant strategy allows a firm to
A) obtain the highest benefit, regardless of its rivals' actions.
B) transform a negative-sum game into a positive-sum game.
C) transform a zero-sum game into a positive-sum game.
D) escape from a Prisoners' Dilemma situation.

Question

Quizplus · Accepted Answer

The dominant strategy allows a firm to choose the best possible action for itself regardless of what its rivals do, thereby obtaining the highest benefit. This ensures that the firm does not get affected by the actions of its rivals and can make decisions independently.

The Dominant Strategy Allows a Firm to