The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2

-Firms develop brand names in order to make the demand for their product more elastic.

Question

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2
 
-Firms develop brand names in order to make the demand for their product more elastic.

Quizplus · Accepted Answer

Firms develop brand names to differentiate their products, create loyalty, and make the demand for their product more inelastic, as consumers are willing to pay a premium for brands they trust or prefer.

The Table Below Shows the Payoff (Profit) Matrix of Firm