Consider Figure 26-2. Suppose conditions in the industry change in such a way that the amount that

Question:

Consider Figure 26-2. Suppose conditions in the industry change in such a way that the amount that each firm makes if it charges a high price when the other firm charges a low price increases from $2 million to $3 million. Is the firm's pricing decision altered by this change and, if so, in what way? Explain briefly?