Refer to Table 14.1. Firm A does not have a dominant strategy.

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Anthony laietta · Accepted Answer

Final Answer : True, Explanation :  A dominant strategy is one that results in the highest payoff for a player no matter what the other player does. In Table 14.1, Firm A does not have a strategy that always gives it a higher payoff regardless of B's actions. If B raises the price, A's best response is to not raise the price ($15,000 > $3,000). If B does not raise the price, A's best response is to raise the price ($10,000 > $5,000). Since A's best response depends on B's action, A does not have a dominant strategy.

Refer to Table 14.1. Firm A does not have a dominant strategy.

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