The Following Payoff Matrix Shows the Profits Accruing to Two

question 9

Multiple Choice

The following payoff matrix shows the profits accruing to two firms,Company A and Company B,under different pricing strategies.In each cell,the figure on the left indicates Company A's payoff and the figure on the right indicates Company B's payoff.
Table 15-2
-Refer to Table 15-2.Which of the following is true?

• A)Company A's dominant strategy is to set a high price.
• B)Company A's dominant strategy is to set a medium price.
• C)Company A's dominant strategy is to set a low price.
• D)Company A does not have a dominant strategy.

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Definitions:

Authority

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Familiarity

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The process of transmitting messages without the use of words, which may include gestures, body language, facial expressions, and eye contact.

Persuasion

The action or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.