Two firms A and B compete on price.  They can choose a low or high price.  Firm A is smaller than firm B, and typically earn a lower payoff. For instance if both firms offer a low price firm A earns $400, and B $500, and if they both offer a high price Firm A earns just $400, while firm B earns $1,000.  However, when Firm A offers a low price and B a high price firm A can gain an advantage and will earn $600, while B will earn $400.  Finally, if the situation is reversed and B offers a low price and B a high price, B will steal the market and earn $1,500 while A will earn nothing. Please construct a payoff matrix for this situation Does Firm A have a dominant strategy?

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