a) find (iF ANY) EACH FIRM'S DOMINANT STRATEGY

B)which strategy does each firm choose in equilibrium when collussion (joint aggreement) is not allowed?

c)Suppose that collussion is allowed between the two firms. Could these firms benefit from the collussion? why or why not?

O 1/21 answered Time Remaining: 196m rjan, Ronish QUESTION 4: 15 Total Marks Consider two firms in the Australian market. The firms A and B are the only two firms servicing the market. They each have to decide to charge a high price or a low price. The payoff matrix below presents their alternative strategies. Firm B chooses High Price Low Price High Price Firm A earns $1000 Firm A earns $1400 Firm B earns $1000 Firm B earns - $200 Firm A chooses Low Price Firm A earns $300 Firm A earns $400 Firm B earns $1200 Firm B earns $400 2 Q4a a) [5 marks] Find (if any) each firm's dominant strategy. H . =. BiA X X QEE 6x | Proctorio is sharing your screen. Stop sharing Hide Unanswered Save