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Two firms are choosing their production levels simultaneously. Profits are given by the strategic grid below: Firm 2 High Medium Low High 3, 3 6,
Two firms are choosing their production levels simultaneously. Profits are given by the strategic grid below: Firm 2 High Medium Low High 3, 3 6, 2 6, 1 Firm 1 Medium 2, 6 5,5 7, 4 Low 1, 6 4, 7 6, 6 9. What is firm 1's dominant strategy? High, Medium, Low, or None (circle one) 10. Does Firm 2 have a dominant strategy? High, Medium, Low, or None (circle one) 11. The Nash Equilibrium(s) is(are) (High, High). (write your answer)
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