1. In this payoff matrix, Bonnie should ______ and Clyde should ______.

A) confess; remain silent
B) remain silent; confess
C) confess; confess
D) remain silent; remain silent
E) confess; confess or remain silent

2. On a piece of paper redraw the matrix. The dollar amount inside the matrix indicates the profit received from a high ticket price and a low ticket price. (m -- stands for millions)

Airline A information is located in the upper left hand corner of the matrix.

Airline B information is located in the lower right hand corner of the matrix.

A) Airline A has no dominant strategy.
B) Airline A has a dominant strategy to charge a high P.
C) Airline B has no dominant strategy.
D) Airline B has a dominant strategy to charge a low P.
E) both answers B) and D) are correct.

3. On a piece of paper redraw the matrix. The dollar amount inside the matrix indicates the profit received from a high price and a low price.

Company A information is located first in the matrix.

Company B information is located second in the matrix.

A) Company A has no dominant strategy.
B) Company A has a dominant strategy to charge a high P.
C) Company B has no dominant strategy.
D) Company B has a dominant strategy to charge a low p.
E) both answers B) and D) are correct.