Abbott and Costello are two firms that compete with each other in the market for ice-cream.They can price their product at a high,medium,or low price.The following matrix shows their profits from their respective pricing strategies.
Table 15-3
-Refer to Table 15-3.When Abbott chooses the high-pricing strategy,Costello's highest possible profit is:
A)$115
B)$100
C)$107
D)$21

Question

Abbott and Costello are two firms that compete with each other in the market for ice-cream.They can price their product at a high,medium,or low price.The following matrix shows their profits from their respective pricing strategies.
Table 15-3 
-Refer to Table 15-3.When Abbott chooses the high-pricing strategy,Costello's highest possible profit is:
A)$115 
B)$100 
C)$107 
D)$21

Quizplus · Accepted Answer

When Abbott chooses the high-pricing strategy, Costello's highest possible profit is $115, as indicated in Table 15-3.

Abbott and Costello Are Two Firms That Compete with Each