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A decision matrix shows prices of firm X and firm Y.The horizontal axis is labeled firm X. It ranges from high price to low price
A decision matrix shows prices of firm X and firm Y.The horizontal axis is labeled firm X. It ranges from high price to low price from left to right. The vertical axis is labeled firm Y. It ranges from low price to high price from bottom to top. The prices of firm X and firm Y are as follows. Cell 1. Firm Y high price and firm X high price: X = 625 dollars, Y = 625 dollars. Cell 2. Firm Y high price and firm X low price: X = 725 dollars, Y = 475 dollars. Cell 3. Firm Y low price and firm X high price: X = 475 dollars, Y = 725 dollars. Cell 4. Firm Y low price and firm X low price: X = 400 dollars, Y = 400 dollars. Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. The structure of the payoffs suggests that
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