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Two computer firms, A and B, are planning to market network systems for office information management. Each firm can develop either a fast, high-quality system
Two computer firms, A and B, are planning to market network systems for office information management. Each firm can develop either a fast, high-quality system (High), or a slower, low-quality system (Low). Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix:
Firm B | |||
High | Low | ||
Firm A | High | 50, 40 | 60, 45 |
Low | 55, 55 | 15, 20 |
- Suppose Firm B could make its decision first. The outcome of this game in that case would be
A. | B chooses High and A chooses Low | |
B. | B chooses High and A chooses High | |
C. | B choosesLow and A chooses Low | |
D. | B choosesLow and A chooses High |
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