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Refer to the Normal-Form Game of Price Competition Shown Below

Question 8

Multiple Choice

Refer to the normal-form game of price competition shown below.  Firm B Firm A C  D  A 50,50500x,200 B 100,500x50,50\begin{array}{l}\quad\quad\quad\quad\quad\quad\text { Firm B}\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { C } & \text { D }\\\hline & & \\ \text { A } & 50,50 & 500-x, 200 \\\hline & & \\\text { B } & 100,500-x & 50,50 \\\hline\end{array}\end{array} For what values of x is strategy B strictly dominant for firm A?


A) All x > 450
B) All x < 450
C) x = 450
D) x < 50

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