Table 11-6 Suppose OPEC Has Only Two Producers,Saudi Arabia

Table 11-6 Suppose OPEC has only two producers,Saudi Arabia and Nigeria.Saudi Arabia has far more oil reserves and is the lower cost producer compared to Nigeria.The payoff matrix in Table 11-6 shows the profits earned per day by each country."Low output" corresponds to producing the OPEC assigned quota and "high output" corresponds to producing the maximum capacity beyond the assigned quota.
-Refer to Table 11-6.Is there a dominant strategy for Nigeria and,if so,what is it?

A) Yes,it has a dominant strategy depending on what Saudi Arabia does.
B) No,there is no dominant strategy.
C) Yes,the dominant strategy is to produce a low output.
D) Yes,the dominant strategy is to produce a high output.

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