Following the procedure of successive elimination of dominated strategies, the m
ID: 1222847 • Letter: F
Question
Following the procedure of successive elimination of dominated strategies, the manager of Hardaway Corporation will eliminate in the first round the strategy of setting:
a low price.
a medium price.
a high price.
none of the above; Hardaway does not have a dominated strategy.
a low price.
a medium price.
a high price.
none of the above; Hardaway does not have a dominated strategy.
Question 1 Using the following payoff table for Hardaway Corporation and Paxton Industries. These two firms must make simultaneous pricing decisions. They can choose low, medium, or high prices. The payoffs given are in thousands of dollars of profit per month Paxton Industries Low High $32, $20 $45, S35 $50, S50 Medium Low $30, S30 $20, S45 $15, S48 $45, S20 $40, S40 $38, S52 Hardaway Corp. Mediunm High Payoffs in thousands of dollars of monthly profits For the simultaneous pricing decision facing Hardaway Corporation and Paxton Industries Question 1 options: cell I is a strategically stable pricing outcome cell A is the likely outcome of the pricing decision. cell E is the equilibrium pricing decision. 1s the equilibrium pricing decision Cboth firms pricing low is a Nash equilibrium. O both b and dExplanation / Answer
Answer :- Q1. e. both b and d.
Q2. b. a medium price.