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Question ? Use the following information for Questions 3', B and 9. Two fIrmS are competing in a one-time market where each rm needS to
Question ? Use the following information for Questions 3', B and 9. Two fIrmS are competing in a one-time market where each rm needS to Simultaneoualy decide whether to charge a high price or a low price.The payoff matrix is. below [e.g., if Firm 1 chargea a low price and Firm 2 chargea a high price. then Firm 1'5 payoff i5 50 and Firm 2'5 payoff is. -5Ei. Hiahprice High Price 5i], 50 if}: ii] What would the rms' payoffs be if they agree to cooperate with each other and the agreement is. enforceable [i.e., no cheating}? Q ao.5c: O ll-5i] O 10.10 one C) There are multiple likely outcomea
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