The Table Below Shows the Payoff (Profit) Matrix of Firm

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 12.2

-Refer to Table 12.2. If 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.