MC Qu. 14-253 (Algo) Answer the question based...

The horizontal axis is labeled firm A's strategies. It is marked international and national from left to right. The vertical axis is labeled firm B's strategies. It is marked national and international from bottom to top. The strategies of firm A and firm B in the decision matrix are as follows. Cell 1. Firm B's strategies, international and firm A's strategies, international: A = 3 M dollars and B = 3 M dollars. Cell 2. Firm B's strategies, international and firm A's strategies, national: A = 5 M dollars and B = 15 M dollars. Cell 3. Firm B's strategies, national and firm A's strategies, international: A = 15 M dollars and B = 5 M dollars. Cell 4. Firm B's strategies, national and firm A's strategies, national: A = 17 M dollars and B = 17 M dollars.

Answer the question based on the payoff matrix for a duopoly, in which the numbers indicate the profit from following either an international strategy or a national strategy. If firm A chooses an international strategy and firm B chooses an international strategy, then the payoffs will be

Multiple Choice

• $5M for firm A and $15M for firm B.
• $17M for firm A and $17M for firm B.
• $15M for firm A and $5M for firm B.
• $3M for firm A and $3M for firm B.