Correct Answer:

Produce the high quantity

Samuel

From a game theory perspective, what is Francis's dominant strategy in this "game?"

Produce the high quantity

Econ Mentor

That is correct!

Samuel

So Kim, when you both play your dominant strategy, where do you end up$?$

What profits do you both earn?

We both earn $$480$ in profit.

I earn $$540$ and Francis earns $$450.$

I earn $$450$ and Francis earns $$540.$

We both earn $$500$ in profit.