How can i answer this type of question?

Quiz: Quiz 4 Submit Quiz This Question: 1 pt 9 of 10 This Quiz: 10 pts possible Suppose there are only two equal-sized firms - Firm A and Firm B -- competing in an oligopoly industry. Each firm can decide either to raise or to lower the price of the product. Each firm knows that the following outcomes will occur for each pricing Firm E decision, depending on how its rival reacts Lower Price Raise Price i. If both firms raise the price, each firm earns $5 million in annual profit. li. If both firms lower the price, each firm earns $3 million in annual profit. B's Payoff B's Payoff Lower Price = $ million = $ million ili. If one of the firms lowers the price while its rival raises the price, the firm with the low price will earn $7 million per year while the high-price firm will earn $1 million per year. A's Payoff A's Payoff Firm a. Fill in the payoff table displayed to your right, based on the outcomes described above. = $ million = $ million A B's Payoff B's Payoff b. Assuming no collusion, the dominant pricing strategy for Firm A would be to v its price. Raise Price = $ million = $ million Assuming no collusion, the dominant pricing strategy for Firm B would be to its price. A's Payoff A's Payoff = $|million = $|million c. Suppose, in Year 1, each firm decides to pursue cooperative pricing through collusion. Firm A's annual profit would be $ million. d. After each firm pursues cooperative pricing in Year 1, Firm A decides to pursue opportunistic behaviour in Year 2. Meanwhile Firm B pursues a tit-for-tat strategy. Firm A's profit in Year 2 would be $ | million. e. If in Year 3 both firms pursue a tit-for-tat strategy, Firm A will earn a profit equal to $ million in Year 3. f. In the long run, the most profitable pricing strategy for each of these two firms would be to the price. Enter your answer in each of the answer boxes. ? Save for Later Type here to search O W Desktop 1 18 0)) ENG 8:31 AM 11/24/2020