The table below shows the payoff (profit) matrix of Firm A and Firm B indicating

Question

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms). Table 12.2 Fim A $500 $500 Firm A $50 Firm A $38 Firm B Firm A $60 Firm A $42 $200 Firm B $20Firm B $39 Refer to Table 12.2. If firm B follows its dominant strategy but firm A does not, then firm B earns a profit of: $45. o B. $20. C. $40. D550 E. s60. Click Save and Submit to save and submit. click Save All Answers to save oll answers

Explanation / Answer

Answer:- Refer to Table 11.2. If firm B follows its dominant strategy but firm A does not, firm B will earn a profit of:

Correct Answer:- A:- $45

Answer:- Refer to Figure 12.3. A perfectly competitive outcome would exist at a price of _____ and an output level of _____.

Correct Answer:- P5; Q3

Answer :- According to Table 12.2, if firm A follows its dominant strategy but firm B does not, firm A earns a profit of:

Correct Answer:- $60

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