Homework answers / question archive / Consider the payoff matrix below, which shows the pricing strategies of two competing firms

Consider the payoff matrix below, which shows the pricing strategies of two competing firms

Economics

Share With

Consider the payoff matrix below, which shows the pricing strategies of two competing firms. Firm B Price high Price low $150 $100 $100 -$50 Price high Firma Price low -$50 $0 $150 $0 The dominant strategy for Firm A is to(Click to select) The dominant strategy for Firm B is to (Click to select) If both firms play their dominant strategies, the outcome (Click to select a Nash equilibrium. A Nash equilibrium occurs when: O both firms earn the highest profit O every player wants to change strategy, given the actions of other players. Ono player wants to change strategy, given the actions of other players. O both firms earn the lowest profit
Use the figure below to determine the dominant strategy for each player, if a dominant strategy exists. Player B Strategy 1 2 Strategy 2 Strategy 1 10 Player A Strategy 2 11 3 What is the dominant strategy for Player A? (Click to select) What is the dominant strategy for Player B? Click to select)