Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪
-The likely outcome of this simultaneous pricing decision is for Allied to price _________ (low, high) and for Union to price _________ (low, high).

Question

Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪ 
-The likely outcome of this simultaneous pricing decision is for Allied to price _________ (low, high) and for Union to price _________ (low, high).

Quizplus · Accepted Answer

The Answer of Two firms, Allied Corporation and Union, Inc., compete primarily by price. Each firm must choose either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations:
‪ 
-The likely outcome of this simultaneous pricing decision is for Allied to price _________ (low, high) and for Union to price _________ (low, high).

Two Firms, Allied Corporation and Union, Inc