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Dunkin' Donuts and Starbucks compete by setting prices. Each firm can set either a high price or a low price. If both set high prices,

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Dunkin' Donuts and Starbucks compete by setting prices. Each firm can set either a high price or a low price. If both set high prices, their profits will be 100 each; if both set low prices their profits will be 1 each. If one firm sets a high price and the other sets a low price, the firm with the low price will have a profit of 150 and the firm with the high price will have a profit of 0. The table below represents the firms' strategies and outcomes where Dunkin' Donuts chooses the row and Starbucks chooses the column. High Low High I 1I Low IV Which payoff values appear in box II? Note: In the payoff (x, y) the variable x is the payoff for Dunkin' Donuts and y is the payoff for Starbucks. O (1, 1) (100, 100) O (0, 150) (150, 0)

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