The table given below represents the payoff matrix of firms A and B, when they choose to produce either high output or low output. In each cell, the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs. Firm B Low Output High Output Low Output 25 15 25 Firm A X High Output 40 30 5 Y If X = 15 and Y = 10, then the information in the table implies that: 1. the dominant strategy for Firm A would be to produce low output. 2. the dominant strategy for Firm B would be to produce high output. 3. the dominant strategy for both Firm A and Firm B would be to produce high output. 4. neither Firm A nor Firm B has any dominant strategy.
The table given below represents the payoff matrix of firms A and B, when they choose to produce either high output or low output. In each cell, the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs. Firm B Low Output High Output Low Output 25 15 25 Firm A X High Output 40 30 5 Y If X = 15 and Y = 10, then the information in the table implies that: 1. the dominant strategy for Firm A would be to produce low output. 2. the dominant strategy for Firm B would be to produce high output. 3. the dominant strategy for both Firm A and Firm B would be to produce high output. 4. neither Firm A nor Firm B has any dominant strategy.
Chapter15: Oligopoly And Strategic Behavior
Section: Chapter Questions
Problem 17P
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