Consider the accompanying payoff matrix. If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A)300; 50
B)50; 300
C)300; 500
D)500; 300

Question

Consider the accompanying payoff matrix.  If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A)300; 50 
B)50; 300 
C)300; 500 
D)500; 300

Quizplus · Accepted Answer

If both firms offer reduced rates (the top left cell), each earns 50, and if both firms keep their rates high (the bottom right cell), each earns 300.

Consider the Accompanying Payoff Matrix