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Author Question: Firms X and Y face the following payoffs in terms of profits, according to which of two prices - a ... (Read 77 times)

Sufayan.ah

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on: May 25, 2020
Firms X and Y face the following payoffs in terms of profits, according to which of two prices - a high price or a low price - that each one charges. Each firm must choose whether to charge the high price or the low price, but does not know what the other will do.

​Firm X: high priceFirm X low price
Firm Y: high priceX: £10m
Y: £8m		X: £13m
Y: £4m
Firm Y: low priceX: £5m
Y: £9m		X: £7m
Y: £6m
In the absence of collusion, which combination of strategies is most likely to occur?
◦ X sets the high price and Y sets the low price.
◦ Both firms set the low price.
◦ Both firms set the high price.
◦ X sets the low price and Y sets the high price.
◦ Any of the four combinations of strategies is likely, depending on what each firm predicts that its rival is most likely to do.
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
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Marked as best answer by Sufayan.ah on May 25, 2020

moormoney

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Reply #1 on: May 25, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Sufayan.ah

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Reply 2 on: May 25, 2020
YES! Correct, THANKS for helping me on my review

matt95

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Reply 3 on: Yesterday
:D TYSM

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