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content area left Part 1 Megabucks and CashCow are the only two firms in a market. Each firm must decide whether to price high or
content area left Part 1 Megabucks and CashCow are the only two firms in a market. Each firm must decide whether to price high or price low. The payoffs from each strategy combination are shown to the right long dash in millions of dollars. The first number in each pair is Megabucks' profit; the second is CashCow's profit. If the firms cooperate, the strategy that Megabucks will choose is , and the strategy that CashCow will choose is price high price low . Part 2 If the firms behave opportunistically, the strategy that Megabucks will choose is price high price low , and the strategy that CashCow will choose is price high price low . . . . Question content area right Part 1 Price High ----- Cash Cow ----- Price Low Price Low ---Megabucks --- Price High $ 100$ 100$ 150$ 5$ 20$ 20$ 5$ 150
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