Question

The payoff matrix shows all of the following EXCEPT

a. if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.
b. if they both choose a low price, each makes $4 million.
c. if one chooses a low price and the other doesn't, the low priced firm will make $8 million.
d. if both oligopolists choose a high price, each makes $6 million.

Answer 1

Option A is the correct answer

A). if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.

Explanation: the pay off matrix shows all the options except that if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.