please explain o. Figure: Payoff Matrix I for Blue Spring and Purple Rain Purple
ID: 1109787 • Letter: P
Question
please explain
o. Figure: Payoff Matrix I for Blue Spring and Purple Rain Purple Rairn High price Low price Purple Rain's Purple Rains profn - profit Be $50000 Spring's proft s -$2.000 price Spring's proft $20,000 Purple Rain'sPurple Rains 12,000 ue profit $10,000 LOW Bue price Spring's $50,000 Relerence: Ref 32-1 profit $10,000 aveliabre to ity f idb oxce and aloSw tng.ahd eudph Ran atmye treoe yohaiI for Blue spring and Purple Rain. The fgure refers to two producers f bottid water. Each has two sts always charge a low price O always charge a high price. O always adopt the same strategy as Blue Spring O Purple Rain does not have a dominant strategy.Explanation / Answer
Explanation:
A dominant strategist is one who gives the best payoff ever possible to its consumers irrespective of what the other players in the market does. According to payoff matrix, we can arrive at a conclusion that Purple rain is offering a better payoff to its customers which is directly opposite to the strategy of Blue spring. Thus it is proved that Purple rain does not follow any dominant strategy.
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