Table 17-7 Two Companies, Wonka and Gekko, Each Decide Whether to Produce

Table 17-7
Two companies, Wonka and Gekko, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies.

-Refer to Table 17-7. The dominant strategy for Wonka is to

A) produce a good quality product, and the dominant strategy for Gekko is to produce a good quality product.
B) produce a good quality product, and the dominant strategy for Gekko is to produce a poor quality product.
C) produce a poor quality product, and the dominant strategy for Gekko is to produce a good quality product.
D) produce a poor quality product, and the dominant strategy for Gekko is to produce a poor quality product.

Correct Answer:

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