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10. Table 25 .1 l Company XYZ's Possible Responses Company ABC's Charge high Prices Charge low Prices Action . : Charge high Prices I Prot

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10. Table 25 .1 l Company XYZ's Possible Responses Company ABC's Charge high Prices Charge low Prices Action . : Charge high Prices I Prot gain/loss=$0 l Prot loss=$5,000 Charge low Prices \\ Prot gain=$50,000 j Prot loss=$500 Given the payoff matrix in Table 25.1, if the probability of rivals matching a price reduction is 99 percent, what is the expected payoff for a price cut by Company ABC? A) $0. B) $5. C) -$500. D) -$5 ,000

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