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(Use for Questions 4-6): The Ulysses Corporation and the Xenophon Company are the only producers of a sophisticated type of camera. They each can engage in either a high or a lowlevel of advertising in trade journals. The payoff matrix (profit in millions of dollars) is as follows:Xenophon CompanyHigh LevelLow LevelХ, $13MU, $12MX, $12MU, $11MLow LevelUlysses CorpX, $12MU, $13MX, $11MU, $12MHigh LevelIs there a dominant strategy for each firm? If so, what is it?a. Xenophon dominant Low Level, Ulysses dominant High LevelXenophon dominant Low Level, Ulysses dominant Low LevelC. Xenophon dominant Low Level, Ulysses dominant not dominantd.Xenophon not dominant, Ulysses not dominante. Xenophon not dominant, Ulysses dominant Low Levelf.Xenophon dominant High Level, Ulysses dominant High Levelg. Xenophon dominant High Level, Ulysses dominant Low Levelh.Xenophon not dominant, Ulysses dominant High Level

Question
(Use for Questions 4-6): The Ulysses Corporation and the Xenophon Company are the only producers of a sophisticated type of camera. They each can engage in either a high or a low
level of advertising in trade journals. The payoff matrix (profit in millions of dollars) is as follows:
Xenophon Company
High Level
Low Level
Х, $13M
U, $12M
X, $12M
U, $11M
Low Level
Ulysses Corp
X, $12M
U, $13M
X, $11M
U, $12M
High Level
Is there a dominant strategy for each firm? If so, what is it?
a. Xenophon dominant Low Level, Ulysses dominant High Level
Xenophon dominant Low Level, Ulysses dominant Low Level
C. Xenophon dominant Low Level, Ulysses dominant not dominant
d.
Xenophon not dominant, Ulysses not dominant
e. Xenophon not dominant, Ulysses dominant Low Level
f.
Xenophon dominant High Level, Ulysses dominant High Level
g. Xenophon dominant High Level, Ulysses dominant Low Level
h.
Xenophon not dominant, Ulysses dominant High Level
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(Use for Questions 4-6): The Ulysses Corporation and the Xenophon Company are the only producers of a sophisticated type of camera. They each can engage in either a high or a low level of advertising in trade journals. The payoff matrix (profit in millions of dollars) is as follows: Xenophon Company High Level Low Level Х, $13M U, $12M X, $12M U, $11M Low Level Ulysses Corp X, $12M U, $13M X, $11M U, $12M High Level Is there a dominant strategy for each firm? If so, what is it? a. Xenophon dominant Low Level, Ulysses dominant High Level Xenophon dominant Low Level, Ulysses dominant Low Level C. Xenophon dominant Low Level, Ulysses dominant not dominant d. Xenophon not dominant, Ulysses not dominant e. Xenophon not dominant, Ulysses dominant Low Level f. Xenophon dominant High Level, Ulysses dominant High Level g. Xenophon dominant High Level, Ulysses dominant Low Level h. Xenophon not dominant, Ulysses dominant High Level

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Step 1

The payoff matric is given below:

Хenuphon C'orpaпy
igh Level
Low Level
X,$12M
U.$11M
X, S13M
U.S12M
Low Level
Ulysscs Corp
X, S12M
U,S13M
X, $11M
U.$12M
High Level
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Хenuphon C'orpaпy igh Level Low Level X,$12M U.$11M X, S13M U.S12M Low Level Ulysscs Corp X, S12M U,S13M X, $11M U.$12M High Level

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Step 2

The profitable situation by both the firms can be determined in the following way:

See Horizontally:

  • If Ulysses Corp chooses low level of advertisement, in this scenario Xenophon Company will also choose low level of advertisement as the profit is $13M which is > $12M
  • If Ulysses Corp chooses high level of advertisement, in this scenario Xenophon Company will choose low level of advertisement as the profit is $12M which is &...

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