Flashtech and Pictone are both profit-maximizing firms. There are only two firms
ID: 1231708 • Letter: F
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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.
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.Explanation / Answer
if flashtech prices high, pictone will earn more if it priceslow ( which is 10 millions ) if flashtech prices low, pictone wil earn more by pricing low( which is 5 millions)
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