High Price Low Price Firm A High Price A = $250 B = $250 A = $200 B = $325 Low Price A = $325 B = $200 A = $175 B = $175 swer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars fo ximize joint profits,
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- 14 Firm B High Price Low Price Firm A High Price A = $250 B-$250 A = $200 B=$325 Multiple Choice Low Price A $325 B-$200 A=$175 B=$175 Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Assume that firm B adopts a high-price strategy, firm A maintains a low-price strategy. Compared to the results from a high-price strategy for both firms, firm B will now lose $50 million in profit and firm A will lose $75 million in profit.The payoff matrix below is for two firms, A and B, deciding the quantity of their output levels. What is the dominant strategy of each firm? icrosc Firm B Strategy High output Low output High output 100, 80 0, 125 Firm A Low output 65, 0 40, 65 Both firms produce low levels of output. DO cGill Both firms produce high levels of output. Temp Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy. Order Article O Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. Neither firm has a dominant strategy. oy 00 halysisChoose the BEST answer. The graph below shows the collusion model of oligopoly. What level of output corresponds to the profit maximizing level of output for the two firms combined? P, MR, and MC at 1/20 B > combined Ⓒ%Q, where one firm maximize profits and splits the market. ⒸQ, where P-MC for the market as a whole. Quantity per month Othere is no efficient solution in the collusion model of oligopoly Q. where the two firms maximize total profit and split the market. MC D combined
- Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the prof each firm. Firm B Multiple Choice High Price O Low Price High Price A = $250 B = $250 A = $200 B = $325 Firm A Low Price A = $325 B = $200 Assume that Firm B adopts a low-price strategy while Firm A maintains a high-price strategy. Compared to the results from a hig firms, Firm B will now A = $175 B = $175 lose $75 million in profit and Firm A will gain $50 million in profit. gain $50 million in profit and Firm A will lose $50 million in profit. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Company A and Company B are competing oligopolists. Both companies are considering increasing or maintaining their prices The payoff matrix shows the profits of the companies in millions based on their possible actions. Company B Increase Price Maintain Price Company A Increase Price $50, $40 $35, 530 Maintain Price 555, $45 $60, $35 The government offers a $5 milon subsidy to maintain current pricing. What is the expected outcome of the new payoff matrix, given the subsidy? The Nash equilibrium changes, and both companies will maintain their prices O The Nash equilbrium changes, and both companies will increase their prices O The Nash equilibrium remains the same, and both companies will increase their prices O Company A wit increase its price, whie Company B maintains its price. O Company A will maintain its price, while Company Bincreases ts price.◄ Search 12:47 PM Sun Nov 12 ← Note Nov 12, 2023 Uptown's price strategy The Nash equilibrium occurs when High Low LED RareAir's price strategy High $12 $15 The more favorable outcome would be for $12 Tt ✪ $6 B Low $6 D $8. $15 $8 S O both firms have an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell A. 92% neither firm has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell D. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell B. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell C. O the firms to collude and use the high-price strategy but this strategy requires cooperation. O one firm to take the lead and let the…
- Save Answer Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies spit the market and earn $60 million each. If they both advertise, they again split the market, but profits are lower by $20 million since each company must bear the cost of advertisirlg. Yet if one company advertises while the other does not, the one that advertises attracts customers from the other. In this case, the company that advertises earns $70 million while the company that does not advertise earns only $30 million. What will these two companies do if they behave as individual profit maximizers? Neither company will advertise, and PM Inc. earns $60. One company will advertise, the other will not. Brown Inc. earns $70. Both companies will advertise, and PM Inc. earns $40. Both companies will advertise, and PM Inc. earns $60.Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: Рop Hop Advertise Doesn't Advertise Advertise 8, 8 15, 2 Fizzo Doesn't Advertise 2, 15 11, 11 For example, the upper right cell shows that if Fizzo advertises and Pop Hop doesn't advertise, Fizzo will make a profit of $15 million, and Pop Hop will make a profit of $2 million. Assume this is a simultaneous game and that Fizzo and Pop Hop are both profit-maximizing firms. If Fizzo decides to advertise, it will earn a profit of $ million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Fizzo decides not to advertise, it will earn a profit of $ million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Pop Hop advertises, Fizzo makes a higher profit if it chooses If Pop Hop doesn't advertise, Fizzo makes a higher…Use the payoff matrix below to answer the next two questions. a. b. C. d. Topco does not advertise a. b. Topco advertises C. d. Acme does not advertise Both firms earn profits of $50 million. 30. Suppose Acme and Topco must choose whether or not to advertise without knowing what the other will do. In the Nash equilibrium: Topco earns profits of $60 million and Acme earns profits of $30 million. Acme advertises Topco earns profits of $30 million and Acme earns profits of $60 million Both firms earn profits of $40 million. 31. Which strategies maximize Acme's and Topco's combined profit? Neither advertises neither Acme nor Topco chooses to advertise. both Acme and Topco choose to advertise. Acme advertises, but Topco does not. Topco advertises, but Acme does not. Both advertise Acme advertises, but Topco does not Topco advertises, but Acme does not
- II.2 Companies A and B can compete on advertising or R&D. The profits (in millions of $ million) of the two firms are given in the table below assumig that they play a one-shot simultancous mov game (the profit or firm A is listed first in every cell of the matrix, followed by the profit of firm B): Advertising R&D 50, 25 10, 70 20, 40 60, 35 1. Find the mixed strategy equilibrium. A\B Advertising R&D 2. What are the expected profits for both firms in this equilibrium?How do I determine values for Y that have dominant strategy? What is the Nash equilibirum? If the Market demand for two companies is P=120-Q and marginal cost is 20. How will the payoff matrix with strategies for each that show cournot equilibirum quantity/half of the monopoly quantity look? How do i solve for the nash equilibrium?One of the predictions of the oligopoly model is that: non-price competition is uncommon and price-cutting competition among rivals is common. O prices tend to remain relatively stable despite short-run fluctuations in market demand. the firms' costs of production (raw material, labor, advertising) remain constant over time. only one buyer (monopsony) will result in the long run. MacBook Pro -> G Search or type URL %23 3 4. 7 8 W R Y