Words.0 Path p QUESTION 2 KLM Company must decide whether to advertise its produ

Question

Words.0 Path p QUESTION 2 KLM Company must decide whether to advertise its product or not. If its rval, Blue Corporation, decides to advertise its product, KLM will make $4 million if it not advertise If Blue Corporation does not advertise, KLM will make $5 million if it advertises and $3 milion if it does not a Is it possible to construct a payoff matrix? Explain b. Does KLM have a dominant strategy? Your response must be a minimum of 200 words OR Click Save and Submit to save and submit. click Save All Answers to save ail onswers Save All Answe

Explanation / Answer

A. A payoff matrix can’t be constructed because Blue Corporation’s profits are not given when its advertising and when it doesn’t as well. Only KLM’s profits (amount it makes) are given.

B. Dominant strategy for KLM is to advertise its products because no matter what blue corporations opt for, the maximum amount KLM would make is when it advertises.

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