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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 would be willing to choose product format A.
B) Neither firm X nor firm Y would be willing to choose product format B simultaneously.
C) Firm X chooses product format A while firm Y chooses product format B.
D) Firm X chooses product format B while firm Y chooses product format A.
Answer
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