Multiple Choice

Two competing firms, Firm A (row player) and Firm B (column player), are choosing a strategy. The payoff matrix below shows the profit for each firm, with payoffs listed as (Firm A's profit, Firm B's profit).

Firm B: Strategy XFirm B: Strategy Y
Firm A: Action 1(10, 5)(12, 12)
Firm A: Action 2(6, 11)(8, 9)

Given this information, if Firm B chooses 'Strategy X', what is Firm A's best response?

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Updated 2025-07-26

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