The following table shows the payoff matrix of the two firms (Firm X and Firm Y) in dollars when they advertise and when they do not advertise. Table 11.1
Refer to Table 11.1.If firm Y follows its dominant strategy and firm X does not then:
A) firm X earns $150 and firm Y earns $200.
B) firm X earns $50 and firm Y earns $200.
C) firm X earns $150 and firm Y earns $180.
D) firm X earns $50 and firm Y earns $100.
E) firm X earns $150 and firm Y earns $100.
Correct Answer:
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