A dominant strategy is: a) a strategy that is the best for a firm no matter what strategies other firms use. b) a strategy that is obviously the best for each firm that is a party to a business decision. c) an equilibrium where each firm chooses the best strategy, given the strategies of other firms. d) a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.

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Business

Wilson Clements

8 June, 15:41

A dominant strategy is: a) a strategy that is the best for a firm no matter what strategies other firms use. b) a strategy that is obviously the best for each firm that is a party to a business decision. c) an equilibrium where each firm chooses the best strategy, given the strategies of other firms. d) a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.

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Valentino Avery · Answer 1

Answer: a) a strategy that is the best for a firm no matter what strategies other firms use.

Explanation: Strategies adopted by a firms could be diverse and may vary depending on many factors. However, a strategy is said to be dominant when it is the most rational or reasonable course a particular firm could adopt. The dominant strategy isn't one which is dependent on the blueprint or tactics chosen by another firm or organization, but one which is best according to the fundamental principle, plan, structure and organizational framework of a particular firm.