Flashtech and Pictone are both profit-maximizing firms. There are only two firms
ID: 1231431 • Letter: F
Question
Flashtech and Pictone are both profit-maximizing firms.
There are only two firms that sellcamera phones, Flashtech and Pictone. The payoff matrix below showsthe profits (in millions of dollars) each company will earndepending on whether it sets a high or low price for its phones.For example, the lower-left cell shows that if Flashtech prices lowand Pictone prices high, Flashtech will earn a profit of $10million and Pictone will earn a profit of $3 million.
Pictone High Price Low Price Flashtech High Price 8 , 8 3 , 10 Low Price 10 , 3 5 , 5
Flashtech and Pictone are both profit-maximizing firms.
Explanation / Answer
Pictone
High Price
Low Price
High Price
8,8
3,10
Low Price
10,3
5,5
Flashtech
As can be seen, regardless of Flashtech, Pictone max profit bydoing High price (10+8) same with vice versa
D. High price; high priceRelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.