Answer the next question(s) based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for a high-price or a low-price strategy. Firm A High-price A = $250 B= $250 Low-price A = S325 B = S200 High-price Fim B A - $200 B=S325 A- S175 B = S175 Low-price If both firms operate independently and do not collude, the most likely profit will be?

ENGR.ECONOMIC ANALYSIS
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1. Answer the next question(s) based on the following payoff matrix for a duopoly in which the numbers indicate
the profit in millions of dollars for a high-price or a low-price strategy.
Fim A
High-price
A = $250
B= $250
Low-price
A = S325
B = $200
High-price
Firm B
A - $200
A - $175
B = S175
Low-price
B= S325
If both firms operate independently and do not collude, the most likely profit will be?
Transcribed Image Text:1. Answer the next question(s) based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for a high-price or a low-price strategy. Fim A High-price A = $250 B= $250 Low-price A = S325 B = $200 High-price Firm B A - $200 A - $175 B = S175 Low-price B= S325 If both firms operate independently and do not collude, the most likely profit will be?
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