This question have 7 parts for that, please help me solve all this question Than

Question

This question have 7 parts for that, please help me solve all this question Thank you!

Two men's clothing stores that compete for most of the market in a small town in Ohio must choose their average price levels simultaneously. The following payoff table facing the two firms, Arbuckle & Son and Baldwin Apparel, shows the weekly profit outcomes for the various price level combinations. 1. Baldwin Apparel Low Price High Price Low $9,000, $6,000 $7,000, $4,000 Arbuckle S& Sons $8,000, $9,000 $10,000, $8,000 High a. Does Arbuckle & Sons have a dominant strategy? If so, what is it? b. Does Baldwin Apparel have a dominant strategy? If so, what is it? c. Does Arbuckle & Sons have a dominated strategy? If so, what is it? d. Does Baldwin Apparel have a dominated strategy? If so, what is it?

Explanation / Answer

a) arbuckle and sons does not have any dominant strategy.

b) yes baldwin apparel have a dominant strategy which is moving or setting low price to earn high profit .

c) No

d) yes,dominant srategy which is low price .

e) nash equilibrium in this game is when both players set low price. because if player 1 set low price then player 2 set low price too.

if player 2 set low price then player 1 also set low price ,so ( low price, low price) is a nash equilibrium.

note: chegg gives permision for 4 or 5 subparts to answer ,plz upload other parts seperately,thankyou

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