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 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 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 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. 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 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 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? O 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. 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, 1: 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 a price. high Considering all of the information given, pricing low 7 a do w 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 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 ng 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. 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. 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 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 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 is not Choosing? is O Flashfone will choose a low price, and Pict IChoose 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. 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