Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8, 8 4, 13 Flashfone Pricing Low 13, 4 7, 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a * price, and if Flashfone prices low, Pictech will make more profit if it chooses price. If Pictech prices high, Flashfone will make more profit if it chooses a _ price, and if Pictech prices low, Flashfone will make more profit if it chooses price. Considering all of the information given, pricing low a dominant strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price. Both Flashfone and Pictech will choose a low price. Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8, 8 4. 13 Flashfone Pricing Low 13, 7. 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a * price, and if Flashfone prices low, Pictech will make more profit if it chooses price. high If Pictech prices high, Flashfone will make more profit if it chooses a low ice, and if Pictech prices low, Flashfone will make more profit if it chooses a price. Considering all of the information given, pricing low a dominant strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price. Both Flashfone and Pictech will choose a low price. Flashfone will choose a high price, and Pictech will choose a low price. Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. True FalseSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8. 8 4, 13 Flashfone Pricing Low 13. 4 7, 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a _ price, and if Flashfone prices low, Pictech will make more profit if it chooses a price. IF high prices high, Flashfone will make more profit if it chooses a _ price, and if Pictech prices low, Flashfone will make more profit if it chooses low price. Considering all of the information given, pricing low a dominant strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price. Both Flashfone and Pictech will choose a low price. Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True O FalseSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8, 8 4, 13 Flashfone Pricing Low 13. 4 7. 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a _ price, and if Flashfone prices low, Pictech will make more profit if it chooses price. If Pictech prices high, Flashfone will make more profit if it chooses a _ price, and if Pictech prices low, Flashfone will make more profit if it chooses price. high Considering all of the information given, pricing low ado low strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price. Both Flashfone and Pictech will choose a low price. O Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8. 8 4, 13 Flashfone Pricing Low 13. 4 7, 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a * price, and if Flashfone prices low, Pictech will make more profit if it chooses a price. If Pictech prices high, Flashfone will make more profit if it chooses a _ price, and if Pictech prices low, Flashfone will make more profit if it chooses price. high ig all of the information given, pricing low a dominant strategy for both Flashfone and Pictech. low If one mins do not collude, what strategies will they end up choosing? Flashfone will choose a low price, and Pictech will choose a high price. O Both Flashfone and Pictech will choose a low price. O Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 8, 8 4, 13 Flashfone Pricing Low 13, 4 7, 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and Pictech will earn a profit of $4 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a * price, and if Flashfone prices low, Pictech will make more profit if it chooses price. If Pictech prices high, Flashfone will make more profit if it chooses a _ price, and if Pictech prices low, Flashfone will make more profit if it chooses price. Considering all of the information given, pricing low a dominant strategy for both Flashfone and Pictech. is not If the firms do not collude, what strategies will they choosing? is O Flashfone will choose a low price, and Pict choose a high price. Both Flashfone and Pictech will choose a low price. O Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True False