I would like to get answers and explanations

Exhibit 10-6 Two-Firm Payoff Matrix Suppose costs are identical for the two rms in Exhibit 10-6. Each rm assumes without formal agreement that if it sets the high price its rival will charge a lower price. Under these conditions, equilibrium will be established by: O Widget Co. charging the high price and Ajax Co. charging the low price. 0 Widget Co. charging the high price and Ajax Co. charging the high price. 0 Widget Co. charging the low price and Ajax Co. charging the low price. 0 Widget Co. charging the low price and Ajax Co. charging the high price. Exhibit 10-6 Two-Firm Payoff Matrix Assume costs are identical for the two rms in Exhibit 10-6. If both rms were allowed to form a cartel and agree on their prices, equilibrium would be established by: Q Widget Co. charging the low price and Ajax Co. charging the high price. 0 Widget Co. charging the high price and Ajax C0. charging the low price. 0 Widget Co. charging the low price and Ajax Co. charging the low price. 0 Widget Co. charging the high price and Ajax C0. charging the high price. Exhibit 10-5 Two-Firm Payoff Matrix Alpha Company $1,000 $500 A 8 $60 billion $20 billion $1,000 Beta Company $60 billion $10 billion C D $10 billion $20 billion $500 $20 billion $20 billion Assume costs are identical for the two firms in Exhibit 10-5. If both firms were allowed to form a cartel and agree on their prices, equilibrium would be established by: O Beta Co. charging $1,000 and Alpha Co. charging $1,000. O Beta Co. charging $1,000 and Alpha Co. charging $500. O Beta Co. charging $500 and Alpha Co. charging $500. Beta Co. charging $500 and Alpha Co. charging $1,000