Multiple Choice
The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) . Table 11.2
-Refer to Table 11.2.If firm both firm A and firm B choose their dominant strategies then:
A) firm A makes a profit of $40 and firm B makes a profit of $45.
B) firm A makes a profit of $50 and firm B makes a profit of $45.
C) firm A makes a profit of $50 and firm B makes a profit of $40.
D) firm A makes a profit of $42 and firm B makes a profit of $40.
E) firm A makes a profit of $40 and firm B makes a profit of $20.
Correct Answer:

Verified
Correct Answer:
Verified
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