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Brian Low price High price Low price (1500, (1500 E5000, 200 Miranda High price (200, 63000 (4000, C4000 Consider the table above. Brian and Miranda
Brian Low price High price Low price (1500, (1500 E5000, 200 Miranda High price (200, 63000 (4000, C4000 Consider the table above. Brian and Miranda own the only two bicycle repair shops in town. Each must choose between a low and high price for repair work. The yearly economic profits from each strategy are indicated in the table. The figures on the left side of each cell indicate Miranda's economic profits; those on the right side indicate Brian's. Suppose this game is played once. Which of the following statements is correct in the context of this game? Select one: A low price from both Miranda and Brian constitutes a dominant strategies equilibrium. O A low price from both Miranda and Brian cannot be established without repeated interaction. O The Nash equilibrium outcome is that both choose a high price. O A low price from both Miranda and Brian cannot be established unless they collude. O There are multiple Nash equilibria. O The Nash equilibrium outcome is that both choose a low price
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