Question

Firm A ​ ​ Low Price High Price ​ Low Price A: $14 million B: $14 million A: $13 million B: $16 million Firm B ​ ​ ​ ​ High Price A: $16 million B: $13 million A: $18 million B: $17 million The table above shows the payoff matrix for two oligopoly firms deciding the price to charge to maximize profit. The Pareto outcome occurs when Firm A receives $million and Firm B receives $ million.

Answer 1

A:

18 million High Price B:

17 million

The table above shows the payoff matrix for two oligopoly firms deciding the price to charge to

maximize profit. The Pareto outcome occurs when Firm A receives

million.