A decision matrix shows the strategies of firm A and firm B$.$The horizontal axis is labeled firm A$$s strategies. It is marked international and national from left to right. The vertical axis is labeled firm B$$s strategies. It is marked national and international from bottom to top. The strategies of firm A and firm B in the decision matrix are as follows. Cell $1.$ Firm B$$s strategies, international and firm A$$s strategies, international: A $=3$ M dollars and B $=3$ M dollars. Cell $2.$ Firm B$$s strategies, international and firm A$$s strategies, national: A $=5$ M dollars and B $=15$ M dollars. Cell $3.$ Firm B$$s strategies, national and firm A$$s strategies, international: A $=15$ M dollars and B $=5$ M dollars. Cell $4.$ Firm B$$s strategies, national and firm A$$s strategies, national: A $=17$ M dollars and B $=17$ M dollars.

Answer the question based on the payoff matrix for a duopoly, in which the numbers indicate the profit from following either an international strategy or a national strategy. Which of the following is true?

Multiple Choice

The national strategy is the dominant strategy for Firm A$,$ and the international strategy is the dominant strategy for Firm B$.$

The international strategy is the dominant strategy for both firms.

The national strategy is the dominant strategy for both firms.

The international strategy is the dominant strategy for Firm A$,$ and the national strategy is the dominant strategy for Firm B$.$