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Answer:
a) The normal-form game with the two-player, one-shot, simultaneous–move game with each player choosing strategy A or strategy B along with the possible outcome is given by: (see attached image)
b) Dominant strategy is the strategy of a player which provides maximum payoff to the player irrespective of other player's actions.
Player 1 dominant strategy = when he chooses strategy B
Player 2 dominant strategy = when he chooses strategy B
c) Nash equilibrium is the strategy set of the players in which no individual player can be better off by deviating from their own strategy, given the other player's strategy.
Strategy A is the Nash equilibrium
d) AA = $800
AB , BA = $700
BB = $400
e) Yes because the Nash equilibrium is the same as the highest ranking strategy pair (AA = $800)
