Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies.
-Refer to Figure 17-5. If the two companies make their pricing decisions independently, then it is likely that QRS will

Question

Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. 
-Refer to Figure 17-5. If the two companies make their pricing decisions independently, then it is likely that QRS will

Quizplus · Accepted Answer

In the figure, QRS has a higher payoff when it charges a low price regardless of whether ABC charges a high or low price. Therefore, it is likely that QRS will charge a low price regardless of what decision ABC makes.