-Refer to Figure 12.2.If A adopts a strategy of price fixing then the best choice for A is to choose the ________ price and the best choice for B is to choose the ________ price.

Question

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In a scenario where A adopts a strategy of price fixing, choosing a high price would be optimal for A because it maximizes profit assuming B also chooses a high price to avoid a price war. Consequently, the best choice for B, knowing A's strategy, would also be to choose a high price to maintain profit margins and avoid triggering a price war that could erode profits for both.