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Scenario 1 Firm A and Firm B are both considering expanding their factories. Firm A has received its license and permits first so it will
Scenario 1 Firm A and Firm B are both considering expanding their factories. Firm A has received its license and permits first so it will get to start construction first, if it decides to expand. The firms' expected annual revenues are shown in the diagram below as (A's revenue, B's revenue) in millions of dollars. Expand (25,30) Expand B No change (50,20) A Expand (35,25) No change B No change (60,40)Refer to Scenario 1: What is Firm A's dominant strategy? Always expand. Always stay the same (no change). Always do the opposite to what Firm B does. None of the alternative answers
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