5 Supreme Wireless(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TVMarket II. The Nash equilibrium in the cable TV market occurs when:Next WirelessHigh priceLow priceNext WirelessNext Wirelessearnsearns$130,000$100,000HighpríceSupremeWirelessSupremeWirelessearms$80,000earns$100,000Next WirelessNext Wirelessearns$90,000earns$80,000LowpriceSupremeWirelessSupremeWirelessearns$90,000earms$130,000both firms set a low price, and each earns $90,000.both firms set a high price, and each earns $100,000.Next Wireless sets a high price and earns $80,000, and Supreme Wireless sets a low price and earns $130,000,Next Wireless sets a low price and earns $130.000, and Supreme Wireless sets a high price and earns $80,000.

Nash equilibrium is set of strategies where players have no incentive to deviate from its current…

Supreme Wireless (Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. The Nash equilibrium in the cable TV market occurs when: Next Wireless High price Low price Next Wireless Next Wireless earns $100,000 earns $130,000 High príce Supreme Wireless Supreme Wireless earms $80,000 earns $100,000 Next Wireless Next Wireless earns earns $80,000 $90,000 Low price Supreme Wireless Supreme Wireless earns $90,000 earms $130,000 both firms set a low price, and each earns $90,000. both firms set a high price, and each earns $100,000. Next Wireless sets a high price and earns $80,000, and Supreme Wireless sets a low price and earns $130,000, Next Wireless sets a low price and earns $130.000, and Supreme Wireless sets a high price and earns $80,000.

Supreme Wireless (Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. The Nash equilibrium in the cable TV market occurs when: Next Wireless High price Low price Next Wireless Next Wireless earns $100,000 earns $130,000 High príce Supreme Wireless Supreme Wireless earms $80,000 earns $100,000 Next Wireless Next Wireless earns earns $80,000 $90,000 Low price Supreme Wireless Supreme Wireless earns $90,000 earms $130,000 both firms set a low price, and each earns $90,000. both firms set a high price, and each earns $100,000. Next Wireless sets a high price and earns $80,000, and Supreme Wireless sets a low price and earns $130,000, Next Wireless sets a low price and earns $130.000, and Supreme Wireless sets a high price and earns $80,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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