Suppose there are only two firms that sell smartphones, Flashfone and Pictech. The payoff matrix that follows shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $10 million and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. Pictech High Price Low Price High Price 9,9 4, 10 Flashfone Low Price 10, 4 6, 6 high or low 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 price. high or low high or low 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 price. high or low is not or is Considering all of the information given, pricing low v 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. O Both Flashfone and Pictech will choose a high price. O Flashfone will choose a high price and Pictech will choose a low price. O Both Flashfone and Pictech will choose a low price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True O False

Q: c. How much total consumer surplus will each of them receive at a price of $32?

A: Last parts C and d are answered below:

Q: how did we get price at $10?

A: As discussed earlier, the monopolist has complete and maximum market power. A Monopolist produces…

Q: What is the Benefit-Cost Analysis?

A: A Benefit-cost analysis which is also known as a cost-benefit analysis is used to predict the costs…

Q: What factors commonly influence a person’s daily buying choices? Select one of these and explain how…

A: These are the factors which influence a person’s daily buying choices: The income of the consumer:…

Q: Answers are A and B, D and E, E and F, F and H, or H and I

A: The indifference curve depicts the combination of two goods that derives the same level of utility…

Q: Which of these is a guideline for making a decision? Guaranteed gain Marginal cost is less than…

A: Optimal decision making requires optimum utilization of resources in order to attain certain level…

Q: The satisfaction that comes from making a choice or consuming a good or service is called focus…

A: The subject of economics focuses on how societies distribute scarce resources to meet seemingly…

Q: Network externalities are important for a. gas stations. b. AARP, an organization that advocates for…

A: Network externality refers to the positive or negative impact that society experiences from the…

Q: Why would someone disagree with your preferred preference?

A: Preferences refer to an individual's or society's subjective rankings or choices regarding various…

Q: Is buying a steak at the restaurant considered a good or service?

A: Answer: Introduction: Goods: goods are those things that have a physical presence. In other words,…

Q: The difference between the price a consumer is willing to pay for a product and the price the…

A: Consumer surplus is the benefit that a buyer gets from purchasing a goods and services measured by…

Q: When a consumer is below the budget line, what does it mean?

A: According to the given question A budget line is gradually a line which have other name that is the…

Q: how do i put this question in exel?

A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…

Q: What are the Shortcomings of Range?

A: A range can be defined as the difference between the largest number and the smallest number. To find…

Q: it is only one choice!!!!

A: Equilibrium in the labor market requires that that the marginal revenue product of labor must be…