Refer to the following normal form game of price competition for questions 85 - 88.

		Firm B
		Low Price	High Price
Firm A	Low Price	0, 0	50, -10
	High Price	-10, 50	25, 25

Suppose that Firm A cheats, and B does not.What is A's payoff from cheating?

a. 0

b. 50

c. -10

d. 25

What is the payoff for each firm in this simultaneous game?

a. Both firms will earn 0

b. Firm A will earn 50 and firm B will earn -10

c. Firm A will earn -10 and firm B will earn 50

d. Both firms will earn 25

Answer rating: 100% (QA)

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