Refer to the Normal-Form Game of Price Competition Shown Below

question 8

Multiple Choice

Refer to the normal-form game of price competition shown below. $\begin{array}{l}\quad\quad\quad\quad\quad\quad\text { Firm B}\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { C } & \text { D }\\\hline & & \\ \text { A } & 50,50 & 500-x, 200 \\\hline & & \\\text { B } & 100,500-x & 50,50 \\\hline\end{array}\end{array}$ For what values of x is strategy B strictly dominant for firm A?

• A) All x > 450
• B) All x < 450
• C) x = 450
• D) x < 50

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Definitions:

Homeowners

Individuals who own their homes, possessing both the dwelling and the land on which it stands.

Suburbs

Residential areas located on the outskirts of a city or large town, typically characterized by lower population density than urban centers and a higher proportion of single-family homes.

Movie Theaters

Venues specifically designed for the exhibition of films to the public, often featuring multiple screens and modern sound systems.