Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
-(Table: Two Rival Gas Stations) Look at the table Two Rival Gas Stations, which shows a payoff matrix for two gas stations in a small town. Each firm can set either a high price or a low price, and customers view these two firms as nearly perfect substitutes. Profits in each cell of the payoff matrix are given as (Swifty, Speedy) . Which of the following choices describes a dominant strategy?

A) Swifty will always set a low price, no matter Speedy's choice.
B) Swifty will always set a high price, no matter Speedy's choice.
C) Swifty will set a low price when Speedy sets a high price, but Swifty will set a high price when Speedy sets a low price.
D) Swifty will set a high price when Speedy sets a high price, but Swifty will set a low price when Speedy sets a low price.