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14. (04.05 HC) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on
14. (04.05 HC) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their prots. The payoff matrix shows the prots of the companies in millions of dollars if they choose to open retail outlets. Company B Retail outlets No retail outlets Company A Retail outlets $25, $25 $30, $15 No retail outlets $35, $35 $34, $20 The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? (2 points) 0 Company A's dominant strategy changes to not open retail outlets. 0 Company A's dominant strategy changes to opening retail outlets. 0 Company B has a dominant strategy to not open retail outlets. 0 Company B has a dominant strategy to open retail outlets. 0 Neither company has a dominant strategy
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