Question 8

MGT ECON COMPLETE, - Read-Only - C. . Search (Alt -Q Lee, Willard Insert Design Layout References Mailings Review View Add-ins Help Writer's Manual Tools TVA Procedures LO Effi Get Add ins Table Pictures Shapes Icons SmartArt Chart Screenshot My Add- ins . Online Link Bookmark Cross- Header Footer P Text Quick WordAn Drop Date & Time Equation Symbe Break Files reference Number " Bor - Parts . Cap . Object Tables Illustrations Reuse Files Add-ins Media Links Comments Header & Footer Test Symbols 8.Two firms, Small and Large, compete by price. Each can choose either a low price or a high price. The following payoff table shows the profit (in thousands of dollars) each firm would earn in each of the four possible decision situations: Small Low price High price Low price $1,000, $500 $375, $250 Large High price $550, -$100 $575, -$200 a) Is there a dominant strategy for Small? If so, what is it? Why