Question 11 1 pts In the following duopoly game, the two firms can either set the price of their product high or low. For each firm, the final profit depends on the price they set as well as the price the other firm sets. The game is represented in the table below. Table 4 Firm B High Price Low Price Firm A gets High Price $1 000 Firm A gets $1 500 Firm B gets $1000 Firm B gets $800 Firm A Firm A gets $800 Firm A gets Firm B $1250 Low Price gets$1500 Firm B gets $1 250 The Nash equilibrium for this game is for: O firm A to sell at a low price and for firm B to sell at a high price both firms to sell the product at a low price O firm A to sell at a high price and for firm B to sell at a low price O both firms to sell the product at a high priceIn the following duopoly game, the two firms can either set the price of their product high or low. For each firm, the final profit depends on the price they set as well as the price the other firm sets. The game is represented in the table below. Table 4 Firm B High Price Low Price Firm A gets $1000 Firm A gets High Price Firm B gets $1500 $1 000 Firm B gets $800 Firm A Firm A gets $800 Firm A gets Low Price Firm B $1250 gets$1500 Firm B gets $1250 What is the profit firm A will earn if it plays its dominant strategy: $800 if firm B has a high price and $1250 if firm B has a low price $800 if firm B has a high price and $1500 if firm B has a low price O $1000 if firm B has a high price and $800 if firm B has a low price $1000 if firm B has a high price and $1500 if firm B has a low priceAs the number of rms in an oligopoly grows larger, what happens to the quantity produced? (i) it approaches the socially optimal level (ii) it increases (iii) it decreases O (i) and (ii) 0 (i) and (iii) 0 (ii) and (iii) O (ii) only