Answer to Question #52968 in Microeconomics for Yana

Question

FIRM A
Concede that Argue there is no evidence
smoke causes cancer that it causes cancer
Concede that Firm A profits: - $20 bill. Firm A profits: -$50 bill.
smoke causes cancer Firm B profits: -$20 bill. Firm B profits: -$10 bill.

FIRM B Argue that there is Firm A profits: -$10 bill. Firm A profits: -$15 bill.
no evidence that Firm B profits: -$50 bill. Firm B profits: -$15 bill.
it causes cancer
If both firms follow a dominant strategy, Firm B's profits (losses) will be?

Answer 1

Firm A profits: - $20 bill. Firm A profits: -$50 bill. 
smoke causes cancer 
Firm B profits: -$20 bill. Firm B profits: -$10 bill.
Firm A profits: -$10 bill. Firm A profits: -$15 bill.
no evidence that 
Firm B profits: -$50 bill. Firm B profits: -$15 bill.
If both firms use their dominant strategy, then firm A will receive profit (loss) of  -$50 bill.