Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm X and firm Y choose not to advertise.
B) There is no dominant strategy in this scenario.
C) Firm X chooses to advertise while firm Y chooses not to advertise.
D) Firm X chooses not to advertise while firm Y chooses to advertise.

Question

Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm X and firm Y choose not to advertise. 
B) There is no dominant strategy in this scenario. 
C) Firm X chooses to advertise while firm Y chooses not to advertise. 
D) Firm X chooses not to advertise while firm Y chooses to advertise.

Quizplus · Accepted Answer

The Answer of  Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm X and firm Y choose not to advertise. 
B) There is no dominant strategy in this scenario. 
C) Firm X chooses to advertise while firm Y chooses not to advertise. 
D) Firm X chooses not to advertise while firm Y chooses to advertise.

Refer to the Above Payoff Matrix for the Profits (In