The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) . Table 11.2
Refer to Table 11.2.If firm B follows its dominant strategy but firm A does not, firm B will earn a profit of:
A) $45.
B) $40.
C) $20.
D) $60.
E) $50
Correct Answer:
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