Table 11-13
Two rival oligopolists in the coffee industry, Wide Awake and Zuma, have to decide on their pricing strategy. Each can choose either a high price or a low price. Table 11-13 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 11-13.If the firms cooperate,what prices will they select?
A) Both firms will select a low price.
B) Zuma will select a high price and Wide Awake will select a low price.
C) Both firms will select a high price.
D) Zuma will select a low price and Wide Awake will select a high price.
Correct Answer:
Verified
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