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Use Table: Payoff Matrix for Two Firms. Firm A Cooperate Compete Cooperate Firm A's profit : $100 Firm A's profit: $75 Firm B Firm B's
Use Table: Payoff Matrix for Two Firms. Firm A Cooperate Compete Cooperate Firm A's profit : $100 Firm A's profit: $75 Firm B Firm B's profit: $120 Firm B's profit: $75 Compete Firm A's profit: $75 Firm A's profit: $50 Firm B's profit: $75 Firm B's profit: $50 Firm A and firm B are the only two firms in the industry and can either compete or cooperate with each other, with the profit results reflecting their actions shown in the table. If both firms pursue their dominant strategies: A. their joint profits are maximized. O B. their joint profits are not maximized. O C. their joint profits reflect an equal sharing of the total profits. D. neither can attain its largest possible profits since there are two dominant strategies for each firm
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