The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1

-Refer to Table 10-1.What is the equilibrium pair of strategies?
A)Low-price for Firm 1 and high-price for Firm 2
B)High-price for both Firm 1 and Firm 2
C)Medium-price for Firm 1 and low-price for Firm 2
D)High-price for Firm 1 and low-price for Firm 2
E)Low-price for both Firm 1 and Firm 2

Question

The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1
 
-Refer to Table 10-1.What is the equilibrium pair of strategies?
A)Low-price for Firm 1 and high-price for Firm 2 
B)High-price for both Firm 1 and Firm 2 
C)Medium-price for Firm 1 and low-price for Firm 2 
D)High-price for Firm 1 and low-price for Firm 2 
E)Low-price for both Firm 1 and Firm 2

Quizplus · Accepted Answer

The Answer of The following matrix gives the profits (in thousands of dollars)for Firm 1 and Firm 2 from high-price,medium-price,and low-price pricing strategies:
Table 10-1
 
-Refer to Table 10-1.What is the equilibrium pair of strategies?
A)Low-price for Firm 1 and high-price for Firm 2 
B)High-price for both Firm 1 and Firm 2 
C)Medium-price for Firm 1 and low-price for Firm 2 
D)High-price for Firm 1 and low-price for Firm 2 
E)Low-price for both Firm 1 and Firm 2

The Following Matrix Gives the Profits (In Thousands of Dollars)for