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6. Consider a game where each of two airlines can choose either low or high fares. Their payoffs are Firm2 Firm2 High Low Firm1, High

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6. Consider a game where each of two airlines can choose either low or high fares. Their payoffs are Firm2 Firm2 High Low Firm1, High 5M, 5M OM, 6M Firml, Low 6M, OM 2M, 2M This game has an equilibrium (A) (High, High); (B) (High, Low); (C) (Low, Low); (D) none of the above. 7. This equilibrium (A ) is in dominant strategies; (B) maximizes the combined profits of the two firms; (C) requires coordination; (D) all of the above

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