Two mens clothing stores that compete for most of the market in a small town in

Question

Two mens clothing stores that compete for most of the market in a small town in Ohio must choose their advertising levels simultaneously. The following payoff table facing the two firms, Arbuckle & Son and Mr. B's, shows the weekly profit outcomes for the various advertising decision combinations. Use this payoff table to answer the question

Mr. B’s advertising level

High

Low

Arbuckle & Son advertising level

High

A

$4,000, $4,000

B

$3,000, $5,000

Low

C

$5,000, $3,000

D

$3,500, $3,500

Mr. B's

Question options:

1) has a dominant strategy: choose a high level of advertising.

2) has a dominant strategy: choose a low level of advertising.

3) has a dominated strategy: choose a low level of advertising

4) has no dominated strategy

5) both a and c.

Mr. B’s advertising level

Explanation / Answer

Arbuckle & Son has low level as dominating strategy

Mr. B has low level as dominating strategy

Pls chose the option as I cannot clearly see them

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