Question: Use the table below, Two firms have implicitly agreed to set prices. The accompanying payoff matrix shows profit for each firm in a market depending


Use the table below, Two firms have implicitly agreed to set prices. The accompanying payoff matrix shows profit for each firm in a market depending upon whether the firm cheats on the agreement by reducing its prices. What is the dominant strategy for each firm, if any? Firm B Cheats Does not cheat A: $0 A: $100 Cheats B: $0 B: -$50 Firm A A: -$50 A: $50 Does not cheat B: $100 B: $50 The dominant strategy for Firm A is to cheat. The dominant strategy for Firm B is also to cheat. The dominant strategy for Firm A is to not cheat. The dominant strategy for Firm B is also to not cheat. The dominant strategy for Firm A is to not cheat. The dominant strategy for Firm B is to cheat. O The dominant strategy for Firm A is to cheat. The dominant strategy for Firm B is to not cheat
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