PLS HURRY

Hotel Price Fixing? Waikiki Beach has two hotels, one run by Juan and a second run by Tulah. The average cost of providing rooms is constant at $30 per day. Assume low-price guarantees are illegal. Here are the possible outcomes: (Enter your responses as integers.)

Part 2

Price-fixing (cartel). Each firm has

30

customers per day at a price of

$40.

Corresponding profit for each firm will be

$enter your response here.

Part 3

Duopoly (no price-fixing). Each firm has

38

customers per day at a price of

$36.

Corresponding profit for each firm will be

$enter your response here.

Part 4

Underpricing (one firm charges

$40

and the other charges

$36).

The low-price firm has

70

customers and the high-price firm has

10

customers. Corresponding profit for the low-price firm will be

$enter your response here

, and profit for the high-price firm will be

$enter your response here.

Part 5

Juan chooses a price first, followed by Tulah. A game tree for the price-fixing game with corresponding profits is depicted to the right.

Hotel Price Fixing? Waikiki Beach has two hotels, one run by Juan and a second run by Tulah. The average cost of providing rooms is constant at $30 per day. Assume low-price guarantees are illegal. Here are the possible outcomes: (Enter your responses as integers.) Price-fixing (cartel). Each firm has 30 customers per day at a price of $40. Corresponding profit for each firm will be $ Duopoly (no price-fixing). Each firm has 38 customers per day at a price of $36. Corresponding profit for each firm will be $. Underpricing (one firm charges $40 and the other charges $36 ). The low-price firm has 70 customers and the high-price firm has 10 customers. Corresponding profit for the low-price firm will be $, and profit for the high-price firm will be $. Juan chooses a price first, followed by Tulah. A game tree for the price-fixing game with corresponding profits is depicted to the right. Predict the outcome. A. Juan will choose a price of $40 and Tulah will choose a price of $36. B. Juan and Tulah will both choose a price of $40. C. Juan will choose a price of $36 and Tulah will choose a price of $40. D. Juan and Tulah will both choose a price of $36