se the table below to answer the following questions: Profits in Millions of Dol
ID: 1119360 • Letter: S
Question
se the table below to answer the following questions: Profits in Millions of Dollars (Firm A's Profit TA, Firm B's Profit ) Firm B's Price $25 $50 $25 (200, 200) (400, 100) Firm A's Price $50 (100, 400) (300, 300) a. If firm A charges a price of $25, what price will firm B charge? b. If firm A charges a price of $50, what price will firm B charge? c. Does Firm B have a dominant strategy? d. If firm B charges a price of $25, what price will firm A charge? e. If firm B charges a price of $50, what price will firm A charge? f. Does Firm A have a dominant strategy? g. If the firms do not communicate with each other, how much will each firm charge? h. If the firms collude, how much will each firm charge? i. Is the situation in which both firms charge $25 a Nash equilibrium? Why or why not? Is the situation in which both firms charge $50 a Nash equilibrium? Why or why not? j.Explanation / Answer
A. When firm A charges prices of $25, price firm B will charge $25
B. When firm A charges price of $50, price B will charge is $25.
C. Firm B does have a dominant strategy.
D. If firm B charges a price of $25, firm A charges $25.
E. If firm B charges $50, firm A charges $25.
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