Module 65 Featured Worksheet 2 Dominant Strategy The profits of Firm A and Firm B depend on whether they decide to advertise or not, as shown in the payoff matrix below. Firm B Advertise Don't Advertise Fir Advertise 100, 85 90, 80 m A Don't 75, 60 60, 70 Advertise How much will Firm A earn if Firm B advertises? 2. If Firm B does not advertise, what is the maximum Firm A can earn? 3. What is the dominant strategy for Firm A? Explain. 4. How much will Firm B earn if Firm A advertises? 5. If Firm A does not advertise, what is the maximum Firm B can earn? 6. What is the dominant strategy for Firm B? Explain.The profits of Firm X and Firm Y depend on whether they maintain or lower their price, as shown in the payoff matrix below. Firm Y Maintain price Lower price Fir Maintain price 40.30 50,60 m X Lower price 60,40 100,80 7. Does firm X have a dominant strategy? Explain. 8. Does Firm Y have a dominant strategy? explain