Figure 17-2

Figure 17-2. Two companies, Acme and Pinnacle, 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 for the two companies.
-Refer to Figure 17-2. The dominant strategy for Acme is to

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

Correct Answer:

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