The payoff matrix below is for two firms, A and B, deciding the quantity of their output levels. What is the dominant strategy of each firm? Firm B Strategy High output Low output High output 100, 80 0, 125 Firm A Low output 65, 0 40, 65 Both firms produce low levels of output. Both firms produce high levels of output. Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy. Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. Neither firm has a dominant strategy.
The payoff matrix below is for two firms, A and B, deciding the quantity of their output levels. What is the dominant strategy of each firm? Firm B Strategy High output Low output High output 100, 80 0, 125 Firm A Low output 65, 0 40, 65 Both firms produce low levels of output. Both firms produce high levels of output. Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy. Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. Neither firm has a dominant strategy.
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Oligopoly
Section: Chapter Questions
Problem 5PA
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Question
![The payoff matrix below is for two firms, A and B, deciding the quantity of their output
levels. What is the dominant strategy of each firm?
icrosc
Firm B
Strategy
High output
Low output
High output
100, 80
0, 125
Firm A
Low output
65, 0
40, 65
Both firms produce low levels of output.
DO
cGill
Both firms produce high levels of output.
Temp
Firm A's dominant strategy is to produce low levels of output, but Firm B does not have
a dominant strategy.
Order
Article
O Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a
dominant strategy.
Neither firm has a dominant strategy.
oy 00
halysis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3524451-fcef-48e4-a310-673d9d07023c%2F8d3bdc09-0f33-4729-90e6-ec0b78bd666b%2Fdki0n97_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The payoff matrix below is for two firms, A and B, deciding the quantity of their output
levels. What is the dominant strategy of each firm?
icrosc
Firm B
Strategy
High output
Low output
High output
100, 80
0, 125
Firm A
Low output
65, 0
40, 65
Both firms produce low levels of output.
DO
cGill
Both firms produce high levels of output.
Temp
Firm A's dominant strategy is to produce low levels of output, but Firm B does not have
a dominant strategy.
Order
Article
O Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a
dominant strategy.
Neither firm has a dominant strategy.
oy 00
halysis
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