Answer the Question Based on the Payoff Matrix for a Duopoly

question 151

Multiple Choice

Answer the question based on the payoff matrix for a duopoly, in which the numbers indicate the profit from following either an international strategy or a national strategy. Which of the following is true?

• A)The international strategy is the dominant strategy for both firms.
• B)The national strategy is the dominant strategy for both firms.
• C)The international strategy is the dominant strategy for firm A, and the national strategy is the dominant strategy for firm B.
• D)The national strategy is the dominant strategy for firm A, and the international strategy is the dominant strategy for firm B.

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Definitions:

Evaluation

The act of evaluating or judging the significance, worth, or quality of an item.

Awareness

The level of consumer knowledge about a product, brand, or issue, which is crucial for marketing and communication strategies.

Interest

The cost of borrowing money, typically defined as a percentage of the principal amount that is charged by lenders to borrowers for the use of the funds.

Promotion-to-Sales Ratio

A metric used to measure the effectiveness of a marketing campaign, calculated by dividing the cost of promotion by the sales generated.