The small town of Narberth has two pizza stores. Which of the following statements are correct? I. The profits of each store depend on the price of the pizza at the other store.
II) Both stores would increase their profit if they cooperated in setting their prices.

Question

Quizplus · Accepted Answer

The profits of each store depend on the price of the pizza at the other store due to competition. Both stores could increase their profits by cooperating, as they could avoid price wars and potentially set higher prices.

The Small Town of Narberth Has Two Pizza Stores