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Answer the Question Based on the Payoff Matrix for a Duopoly

Question 182

Multiple Choice

  Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. If both firms operate independently and actively compete with each other, the most likely profit is A) $400,000 for firm X and $400,000 for firm Y. B) $725,000 for firm X and $475,000 for firm Y. C) $475,000 for firm X and $725,000 for firm Y. D) $625,000 for firm X and $625,000 for firm Y. Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. If both firms operate independently and actively compete with each other, the most likely profit is


A) $400,000 for firm X and $400,000 for firm Y.
B) $725,000 for firm X and $475,000 for firm Y.
C) $475,000 for firm X and $725,000 for firm Y.
D) $625,000 for firm X and $625,000 for firm Y.

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