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Firm A High Price Low Price A = $250 A = $325 High Price S = $250 B = $200 Firm B A =$200 A

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Firm A High Price Low Price A = $250 A = $325 High Price S = $250 B = $200 Firm B A =$200 A = $175 Low Price B= $325 B = $175 Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Assume that firm B adopts a low-price strategy; firm A maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, firm B will now lose $75 million in profit and firm A will gain $50 million in profit. O gain $50 million in profit and firm A will lose $50 million in profit. O gain $75 million in profit and form A will lose $50 million in profit. gain $50 million in profit and firm A will lose $75 million in profit

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