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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.   Pictech Pricing High Low Flashfone Pricing High 11, 11 3, 15 Low 15, 3 9, 9   For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a    price, and if Flashfone prices low, Pictech will make more profit if it chooses a    price.   If Pictech prices high, Flashfone will make more profit if it chooses a    price, and if Pictech prices low, Flashfone will make more profit if it chooses a    price.   Considering all of the information given, pricing high    a dominant strategy for both Flashfone and Pictech.   If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price.   Flashfone will choose a high price, and Pictech will choose a low price.   Both Flashfone and Pictech will choose a low price.   Both Flashfone and Pictech will choose a high price.     True or False: The game between Flashfone and Pictech is not an example of the prisoners’ dilemma. True   False

Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.   Pictech Pricing High Low Flashfone Pricing High 11, 11 3, 15 Low 15, 3 9, 9   For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a    price, and if Flashfone prices low, Pictech will make more profit if it chooses a    price.   If Pictech prices high, Flashfone will make more profit if it chooses a    price, and if Pictech prices low, Flashfone will make more profit if it chooses a    price.   Considering all of the information given, pricing high    a dominant strategy for both Flashfone and Pictech.   If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price.   Flashfone will choose a high price, and Pictech will choose a low price.   Both Flashfone and Pictech will choose a low price.   Both Flashfone and Pictech will choose a high price.     True or False: The game between Flashfone and Pictech is not an example of the prisoners’ dilemma. True   False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
  Pictech Pricing
High Low
Flashfone Pricing High 11, 11 3, 15
Low 15, 3 9, 9
 
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
If Flashfone prices high, Pictech will make more profit if it chooses a    price, and if Flashfone prices low, Pictech will make more profit if it chooses a    price.
 
If Pictech prices high, Flashfone will make more profit if it chooses a    price, and if Pictech prices low, Flashfone will make more profit if it chooses a    price.
 
Considering all of the information given, pricing high    a dominant strategy for both Flashfone and Pictech.
 
If the firms do not collude, what strategies will they end up choosing?
Flashfone will choose a low price, and Pictech will choose a high price.
 
Flashfone will choose a high price, and Pictech will choose a low price.
 
Both Flashfone and Pictech will choose a low price.
 
Both Flashfone and Pictech will choose a high price.
 
 
True or False: The game between Flashfone and Pictech is not an example of the prisoners’ dilemma.
True
 
False
* MindTap - Cengage Learning b Answered: Homework (Ch 17) En x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323& E Apps M Gmail A Maps A clickserve.dartsearc. E Reading list YouTube « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 17) 6. Using a payoff matrix to determine the equilibrium outcome Courses Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) O Catalog and Study Tools each company will earn, depending on whether it sets a high or low price for its phones. A-Z EE Rental Options P College Success Tips Pictech Pricing High Low Career Success Tips High 11, 11 3, 15 Flashfone Pricing ? Help Low 15, 3 9, 9 O Give Feedback For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. bongo If Flashfone prices high, Pictech will make more profit if it chooses a price, and if Flashfone prices low, Pictech will make more profit if it chooses a v price. high If Pictech prices high, Flashfone will make more profit if it chooses a low price, and if Pictech prices low, Flashfone will make more profit if it chooses a price. Considarina all nf the information niven pricins bigh daminant atrateov for bath clachfons and Dictech 1:39 PM O Type here to search 30% 68°F O O O 4) 12/1/2021 x ...
Transcribed Image Text:* MindTap - Cengage Learning b Answered: Homework (Ch 17) En x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323& E Apps M Gmail A Maps A clickserve.dartsearc. E Reading list YouTube « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 17) 6. Using a payoff matrix to determine the equilibrium outcome Courses Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) O Catalog and Study Tools each company will earn, depending on whether it sets a high or low price for its phones. A-Z EE Rental Options P College Success Tips Pictech Pricing High Low Career Success Tips High 11, 11 3, 15 Flashfone Pricing ? Help Low 15, 3 9, 9 O Give Feedback For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. bongo If Flashfone prices high, Pictech will make more profit if it chooses a price, and if Flashfone prices low, Pictech will make more profit if it chooses a v price. high If Pictech prices high, Flashfone will make more profit if it chooses a low price, and if Pictech prices low, Flashfone will make more profit if it chooses a price. Considarina all nf the information niven pricins bigh daminant atrateov for bath clachfons and Dictech 1:39 PM O Type here to search 30% 68°F O O O 4) 12/1/2021 x ...
* MindTap - Cengage Learning b Answered: Homework (Ch 17) En x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323& E Apps M Gmail A Maps A clickserve.dartsearc. E Reading list YouTube « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 17) If Flashfone prices high, Pictech will make more profit if it chooses a v price, and if Flashfone prices low, Pictech will make more profit if it Courses chooses a v price. O Catalog and Study Tools If Pictech prices high, Flashfone will make more profit if it chooses a price, and if Pictech prices low, Flashfone will make more profit if it A-Z EE Rental Options chooses a price. - College Success Tips Considering all of the information given, pricing high a dominant strategy for both Flashfone and Pictech. Career Success Tips If the firms do not collude, what strategies will they e is hoosing? ? Help is not hoose a high price. O Flashfone will choose a low price, and Picte O Give Feedback O Flashfone will choose a high price, Pictech will a low price. O Both Flashfone and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. bonge True or False: The game between Flashfone and Pictech is not an example of the prisoners' dilemma. O True O False 1:39 PM P Type here to search L 30% 68°F O O O 4) 12/1/2021 x ... 近
Transcribed Image Text:* MindTap - Cengage Learning b Answered: Homework (Ch 17) En x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323& E Apps M Gmail A Maps A clickserve.dartsearc. E Reading list YouTube « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 17) If Flashfone prices high, Pictech will make more profit if it chooses a v price, and if Flashfone prices low, Pictech will make more profit if it Courses chooses a v price. O Catalog and Study Tools If Pictech prices high, Flashfone will make more profit if it chooses a price, and if Pictech prices low, Flashfone will make more profit if it A-Z EE Rental Options chooses a price. - College Success Tips Considering all of the information given, pricing high a dominant strategy for both Flashfone and Pictech. Career Success Tips If the firms do not collude, what strategies will they e is hoosing? ? Help is not hoose a high price. O Flashfone will choose a low price, and Picte O Give Feedback O Flashfone will choose a high price, Pictech will a low price. O Both Flashfone and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. bonge True or False: The game between Flashfone and Pictech is not an example of the prisoners' dilemma. O True O False 1:39 PM P Type here to search L 30% 68°F O O O 4) 12/1/2021 x ... 近
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