Answer the Question Based on the Payoff Matrix for a Duopoly

question 103

Multiple Choice

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If both firms choose their strategies simultaneously, then

• A)firm A's dominant strategy is to open a coffee shop.
• B)there is no Nash equilibrium for this game.
• C)firm B's dominant strategy is to not open a coffee shop.
• D)both firms have a dominant strategy to not open a coffee shop.

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