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27. (10 Points) The following questions A and B pertain to Game Theory and Business Pricing. A. (5 Points) Consider the following production game involving
27. (10 Points) The following questions A and B pertain to Game Theory and Business Pricing. A. (5 Points) Consider the following production game involving Firms A and B. Each firm is trying to decide whether to produce a new aircraft. In this game, the profit outcomes are: Firm B II1, 112 Produce Don't Produce Produce Firm A Don't Produce C D What will each firm decide to do, produce or not produce? Explain your reasoning. B. (5 Points) Your firm produces and sells a printer and an ink cartridge for the printer. Your firm has been pricing each product independently of one another, which you know is not correct. You are asked by your firm to explain why pricing them independently is not correct. What is your explanation? 5 Points) Your firm produces and sells printer models "OfficeRocket 103" and "OfficeRocket 104", each for business use. Each printer has its own separate strengths and weaknesses for office use. Your firm has been pricing each product independently of one another, which you know is not correct. You are asked by your firm to explain why pricing them independently is not correct. What is your explanation
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