Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies.
-Refer to Figure 17-5. If this game is played only once, then the most likely outcome is that

Question

Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. 
-Refer to Figure 17-5. If this game is played only once, then the most likely outcome is that

Quizplus · Accepted Answer

In a one-time game, both firms are likely to charge a low price due to the incentive to undercut the other and maximize their own payoff, leading to a Nash equilibrium.