Refer to Table 14.5. Firm A's dominant strategy is to not advertise.

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Brandon Thompson · Accepted Answer

Final Answer : False, Explanation :  A dominant strategy is one that results in the highest payoff for a player, no matter what the other player does. In this case, for Firm A, advertising results in a profit of $200 million if B advertises and $100 million if B doesn't, compared to not advertising, which results in $400 million if B advertises and $150 million if B doesn't. There is no single strategy (advertise or not advertise) that always gives A a higher profit regardless of B's action, so A does not have a dominant strategy based on the given table.

Refer to Table 14.5. Firm A's dominant strategy is to not advertise.

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