Use the following table to answer the question : Table 14-2 : represents the payoff matrix of firms A and B,when they choose to produce low or high output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.

-Refer to Table 14-2.Which of the following statements about the two firms must be true?
A)If Firm B produces low output,Firm A will also produce low output.
B)If Firm B produces high output,Firm A will produce low output.
C)If Firm A produces high output,Firm B will also produce high output.
D)If Firm A produces low output,Firm B will produce high output.

Question

Use the following table to answer the question : Table 14-2 : represents the payoff matrix of firms A and B,when they choose to produce low or high output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.

-Refer to Table 14-2.Which of the following statements about the two firms must be true?

-Refer to Table 14-2.Which of the following statements about the two firms must be true?
A)If Firm B produces low output,Firm A will also produce low output. 
B)If Firm B produces high output,Firm A will produce low output. 
C)If Firm A produces high output,Firm B will also produce high output. 
D)If Firm A produces low output,Firm B will produce high output.

Quizplus · Accepted Answer

In a competitive market, if Firm A produces high output, Firm B is likely to also produce high output to maintain market share and competitiveness.

Use the Following Table to Answer the Question : Table