Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A firm consistently lowers prices to undercut competitors.
B
A player always chooses to cooperate in a Prisoner's Dilemma.
C
A student studies hard for every exam regardless of the difficulty.
D
A voter chooses a candidate based solely on party affiliation.
Understanding the Answer
Let's break down why this is correct
Answer
In game theory, a dominant strategy is a choice that always leads to the best outcome for a player, no matter what the others decide. For example, imagine two friends, Alex and Jamie, deciding whether to study for a test or go to a party. If Alex knows that studying will always give him a higher grade than going to the party, regardless of what Jamie does, then studying is Alex's dominant strategy. This means that even if Jamie chooses to study or go to the party, Alex will still benefit most by studying. In this way, a dominant strategy helps players make the best decision without worrying about others' choices.
Detailed Explanation
A firm that lowers prices all the time is making the best choice. Other options are incorrect because Choosing to cooperate in a Prisoner's Dilemma isn't always the best choice; Studying hard for every exam may not be the best strategy.
Key Concepts
dominant strategy
Topic
Dominant Strategies in Game Theory
Difficulty
easy level question
Cognitive Level
understand
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