CMA Final · Strategic Cost Management · Game Theory
In a two-person zero-sum game, the pay-off matrix for Firm A (rows A1, A2) against Firm B (columns B1, B2, B3) in Rs lakh is: A1: 4, 7, 5; A2: 6, 3, 8. Positive values are gains to A. What is the maximin value for A?
The maximin value is 4. A computes each row's minimum pay-off, 4 for A1 and 3 for A2, and then picks the larger one. Hence A's guaranteed gain under cautious play is Rs 4 lakh.
- A4Correct
- B5
- C6
- D3
Explanation
Row minima are A1 = min(4,7,5) = 4 and A2 = min(6,3,8) = 3. Maximin is the larger of these, which is 4. Choosing 6 mistakenly picks the largest entry in a column rather than a row minimum.
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