The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when they advertise and when they do not advertise Table 12.11 Firm Y Advertise Firm X Advertise Firm X 100 Eirm Y 150 Firm X 160 Not Advertise Firm Y 80 Not Advertise Firm X 60 Firm Y 200 Fem X 150 Firm Y 180 According to Table 12.1, if both the firms follow their dominant strategies, O firm X earns $50 and firm Y earns $200. O firm X earns $180 and firm Y earns $150. O firm X earns $180 and firm Y earns $100. firm X earns $100 and firm Y earns $150. firm X earns $150 and firm Y earns $180.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when they advertise and when they do not advertise.
Table 12.1
Firm Y
Firm X
Advertise
Firm X 100
Firm Y 150
Firm X 180
Not Advertise Firm Y 80
Advertise
Not Advertise
Firm X 50
Firm Y 200
Firm X
150
Firm Y 180
According to Table 12.1, if both the firms follow their dominant strategies,
firm X earns $50 and firm Y earns $200.
firm X earns $180 and firm Y earns $150.
O firm X earns $180 and firm Y earns $100.
O firm X earns $100 and firm Y earns $150.
O firm X earns $150 and firm Y earns $180.
Transcribed Image Text:4 The following table shows the payoff matrix of the two firms (Firm X and Firm Y), in dollars, when they advertise and when they do not advertise. Table 12.1 Firm Y Firm X Advertise Firm X 100 Firm Y 150 Firm X 180 Not Advertise Firm Y 80 Advertise Not Advertise Firm X 50 Firm Y 200 Firm X 150 Firm Y 180 According to Table 12.1, if both the firms follow their dominant strategies, firm X earns $50 and firm Y earns $200. firm X earns $180 and firm Y earns $150. O firm X earns $180 and firm Y earns $100. O firm X earns $100 and firm Y earns $150. O firm X earns $150 and firm Y earns $180.
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