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Suppose That Firm a Finds Itself Facing the Following Payoff

Question 17

Multiple Choice

Suppose that firm A finds itself facing the following payoff matrix in its rivalry with firm B: Suppose that firm A finds itself facing the following payoff matrix in its rivalry with firm B:   A threatens to play strategy W.This threat is: A)  credible because the Nash equilibrium occurs where A plays W and B plays Z. B)  credible because the joint optimal solution occurs where A plays W and B plays Z. C)  not credible because A's dominant strategy is to play X. D)  credible because A's dominant strategy is to play W. E)  not credible because B will never play strategy Z.
A threatens to play strategy W.This threat is:


A) credible because the Nash equilibrium occurs where A plays W and B plays Z.
B) credible because the joint optimal solution occurs where A plays W and B plays Z.
C) not credible because A's dominant strategy is to play X.
D) credible because A's dominant strategy is to play W.
E) not credible because B will never play strategy Z.

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