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Refer to the following normal form game of price competition for the questions Firm B Low Price High Price [Low Price] [0] 0 [50] -10

Refer to the following normal form game of price competition for the questions

Firm B

Low Price

High Price

[Low Price]

[0]

0

[50]

-10

[Firm A]

[High Price]

[-10]

50

[25]

25

If this game is played once, then

Select a) Firm A will charge a lower price and firm B will charge a lower price as your answer

a) Firm A will charge a lower price and firm B will charge a lower price

Select b) Firm A will charge a higher price and firm B will charge a lower price as your answer

b) Firm A will charge a higher price and firm B will charge a lower price

Select d) Firm A will charge a higher price and firm B will charge a higher price as your answer

d) Firm A will charge a higher price and firm B will charge a higher price

Select c) Firm A will charge a lower price and firm B will charge a higher price as your answer

c) Firm A will charge a lower price and firm B will charge a higher price

Firm B

Low Price

High Price

[Low Price]

[0]

0

[50]

-10

[Firm A]

[High Price]

[-10]

50

[25]

25

Suppose that Firm A deviates from a trigger strategy to support a high price. What is A's payoff from cheating?

Select 25 as your answer

25

Select 50 as your answer

50

Select 0 as your answer

0

Select -10 as your answer

-10

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