Table 1

-Refer to Table 1. Boitumelo and Yusuf own the only two bicycle repair shops in town. Each must choose between a low price for repair work and a high price. The yearly economic profits from each strategy are indicated in the table. The figures on the right side of each rectangle indicate Boitumelo's profits; the figures on the left side indicate Yusuf's profits. Which of the following statements is correct?
A) Yusuf's dominant strategy is to charge a low price.
B) Boitumelo's dominant strategy is to charge a high price.
C) The dominant strategy for both Boitumelo and Yusuf is to charge a low price.
D) Yusuf's dominant strategy is to charge a high price.
Correct Answer:
Verified
Q14: The greater the number of firms in
Q19: The market for hand tools in South
Q20: Suppose an oligopolist individually maximises its profits.
Q20: An agreement among firms in a market
Q25: Table 1 Q27: Game theory is important for understanding which Q30: A dominant strategy is one that Q269: The simplest type of oligopoly is Q276: In studying oligopolistic markets, economists assume that Q460: In an oligopoly, each firm knows that
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A) makes
A)monopoly.
B)duopoly.
C)monopolistic competition.
D)oligopolistic
A)there
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