Figure 8.9
-Consider Figure 8.9. If Becky and David could coordinate their decisions then

Question

Quizplus · Accepted Answer

If Becky and David could coordinate their decisions, they would both choose to charge a high price to avoid the price war that would occur if one or both decided to charge a low price. By charging a high price, they avoid undercutting each other's prices, which would lead to lower profits. Charging a high price allows them both to maintain higher profit margins, resulting in profits of 90 each, assuming this is the equilibrium outcome when both choose high prices in a coordinated manner.

Figure 8.9 -Consider Figure 8.9. If Becky and David Could Coordinate Their