Solved

Answer the Question Based on the Payoff Matrix for a Duopoly

Question 103

Multiple Choice

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If both firms choose their strategies simultaneously, then A) firm A's dominant strategy is to open a coffee shop. B) there is no Nash equilibrium for this game. C) firm B's dominant strategy is to not open a coffee shop. D) both firms have a dominant strategy to not open a coffee shop. Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If both firms choose their strategies simultaneously, then


A) firm A's dominant strategy is to open a coffee shop.
B) there is no Nash equilibrium for this game.
C) firm B's dominant strategy is to not open a coffee shop.
D) both firms have a dominant strategy to not open a coffee shop.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q98: Interindustry competition means that<br>A)in oligopolistic industries, a

Q99: Homogeneous oligopolists tend to advertise more than

Q100: The smaller the Herfindahl index, the<br>A)less the

Q101: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the

Q102: If three or four homogeneous oligopolists collude,

Q104: Describe a positive sum game.

Q105: Game theory is best suited to analyze

Q106: Zippy's and Tony's are rival pizza restaurants

Q107: The U.S. steel industry is an example

Q108: Which of the following factors tends to