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Question
Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) and two product formats (A and B) in an industry. A possible outcome of the dominant strategy is:
A) Both firm X and firm Y choose product format A.
B) Both firm X and firm Y choose product format B.
C) Firm X would be willing to choose product format A as long as firm Y simultaneously would be willing to choose format A.
D) Firm X would be willing to choose product format A, while firm Y simultaneously would be willing to choose format B.
Answer
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