Question

Below is the pay-off matrix for a one-shot, simultaneous move game with two players/firms, Firm 1 and Firm 2. They are both in the apple market. Each can chose to go for the high end of the market (high quality) or the low end of the market (low quality). The payoffs are profits in thousands of dollars. Each firm has two strategies: low and high.

  

		Firm2
		Low	High
	Low	-$20, -$30	$100,$800
Firm
	High	$900,$600	$50,$50

Using the above information, complete the below statements by selecting the correct answer.

A)If Firm 1 could move prior to Firm 2, Firm 1's payoff would be

B)Firm 2’s secure strategy is

C)If Firm 1 could move prior to Firm 2, Firm 2's payoff would be

D)Firm 1’s best response strategy is

E)Firm 1’s secure strategy is

F)Firm 1’s dominant strategy is

G)Firm 2’s best response strategy is

H)If Firm 1 could move prior to Firm 2, the strategy that Firm 1 would choose is

I)If Firm 1 could move prior to Firm 2, the strategy that Firm 2 would choose is

J)Firm 2’s dominant strategy is

Answer 1