The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1

-Refer to Table 9-1.If Firm B sets a high price,Firm A will _____.
A)earn a profit equal to $41,000
B)earn a profit equal to $35,000
C)earn a higher profit than firm B
D)earn the same profit as firm A which is equal to $30,000
E)follow the low-price strategy

Question

The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1
 
-Refer to Table 9-1.If Firm B sets a high price,Firm A will _____.
A)earn a profit equal to $41,000 
B)earn a profit equal to $35,000 
C)earn a higher profit than firm B 
D)earn the same profit as firm A which is equal to $30,000 
E)follow the low-price strategy

Quizplus · Accepted Answer

The Answer of The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1
 
-Refer to Table 9-1.If Firm B sets a high price,Firm A will _____.
A)earn a profit equal to $41,000 
B)earn a profit equal to $35,000 
C)earn a higher profit than firm B 
D)earn the same profit as firm A which is equal to $30,000 
E)follow the low-price strategy

The Following Matrix Shows the Pricing Strategies and Resultant Profits