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Satsume Satsume
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6 years ago
Consider the following game in which two firms decide how much of a homogeneous good to produce.  The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs:

   Firm B - low output   Firm B - high output
Firm A - low output   300, 250   200, 100
Firm A - high output   200, 75   75, 100

What are the dominant strategies in this game?
A) Both firms produce low levels of output
B) Both firms produce high levels of output
C) Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy.
D) Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy.
E) Neither firm has a dominant strategy
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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6 years ago
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Satsume Author
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6 years ago
Thanks for your help!!
choih94
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Yesterday
this is exactly what I needed
kaytee23
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2 hours ago
Smart ... Thanks!
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