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-The Above Figure Shows the Payoff to Two Airlines,A and B,of

Question 48

Multiple Choice

  -The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE? A)  Since firm B has no dominant strategy, its decision is unpredictable. B)  Since firm B's decision is unpredictable, firm A's decision is unpredictable. C)  Neither firm entering is a Nash equilibrium. D)  Firm B will not enter because it knows firm A will.
-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?


A) Since firm B has no dominant strategy, its decision is unpredictable.
B) Since firm B's decision is unpredictable, firm A's decision is unpredictable.
C) Neither firm entering is a Nash equilibrium.
D) Firm B will not enter because it knows firm A will.

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