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Background for 49 and 50. Coke and Pepsi are competing against each other to prot in the market for colas. Coke is Pepsi's biggest rival
Background for 49 and 50. Coke and Pepsi are competing against each other to prot in the market for colas. Coke is Pepsi's biggest rival in the market, and Pepsi is Coke's biggest rival. Pepsi is considering two pricing strategies (keep price, raise price) for the coming year, and Coke is considering the same choices. The table below outlines the payoffs in prots to Coke from each choice by the two rms. Pepsi's strategy Keep price Raise Price Coke's Keep price $ 190 million $ 310 million strategy Raise price $ 125 million 3} 250 million 49. IfPepsi chooses a \"keep price\" strategy, what is Coke's best response strategy? Does Coke have a dominant strategy? a. \"keep price\
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