Suppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3, 15 Padmania Pricing Low 15, 3 9. 9 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a * price, and if Padmania prices low, Capturesque will make more profit if it chooses a * price. If Capturesque prices high, Padmania will make more profit if it chooses a * price, and if Capturesque prices low, Padmania will make more profit if it chooses a price. Considering all of the information given, pricing high - a dominant strategy for both Padmania and Capturesque. If the firms do not collude, what strategies will they end up choosing? O Both Padmania and Capturesque will choose a high price. O Padmania will choose a low price, and Capturesque will choose a high price. O Padmania will choose a high price, and Capturesque will choose a low price. Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3. 15 Padmania Pricing Low 15, 3 9.9 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a _ price, and if Padmania prices low, Capturesque will make more profit if it chooses a ~ price. high If Capturesque prices high, Padmania will make more profit if it chooses a low ice, and if Capturesque prices low, Padmania will make more profit if it chooses a ~ price. Considering all of the information given, pricing high - a dominant strategy for both Padmania and Capturesque. If the firms do not collude, what strategies will they end up choosing? Both Padmania and Capturesque will choose a high price. Padmania will choose a low price, and Capturesque will choose a high price. Padmania will choose a high price, and Capturesque will choose a low price. O Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3. 15 Padmania Pricing Low 15, 3 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a * price, and if Padmania prices low, Capturesque will make more profit if it chooses a - price. If Capturesque high high, Padmania will make more profit if it chooses a * price, and if Capturesque prices low, Padmania will make more profit if it chooses a low ice. Considering all of the information given, pricing high - a dominant strategy for both Padmania and Capturesque. If the firms do not collude, what strategies will they end up choosing? O Both Padmania and Capturesque will choose a high price. O Padmania will choose a low price, and Capturesque will choose a high price. O Padmania will choose a high price, and Capturesque will choose a low price. Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. True O FalseSuppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3, 15 Padmania Pricing Low 15, 3 9, 9 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a _ price, and if Padmania prices low, Capturesque will make more profit if it chooses a price. If Capturesque prices high, Padmania will make more profit if it chooses a * price, and if Capturesque prices low, Padmania will make more profit if it chooses a * price. high Considering all of the information given, pricing high - a dominant stra low both Padmania and Capturesque. If the firms do not collude, what strategies will they end up choosing? O Both Padmania and Capturesque will choose a high price. Padmania will choose a low price, and Capturesque will choose a high price. O Padmania will choose a high price, and Capturesque will choose a low price. Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3, 15 Padmania Pricing Low 15, 3 9. 9 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a * price, and if Padmania prices low, Capturesque will make more profit if it chooses a * price. If Capturesque prices high, Padmania will make more profit if it chooses a _ price, and if Capturesque prices low, Padmania will make more profit if it chooses a * price. Considering all high nformation given, pricing high - a dominant strategy for both Padmania and Capturesque. low If the firms do not collude, what strategies will they end up choosing? O Both Padmania and Capturesque will choose a high price. Padmania will choose a low price, and Capturesque will choose a high price. O Padmania will choose a high price, and Capturesque will choose a low price. Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. O True FalseSuppose there are only two firms that sell tablets: Padmania and Capturesque. 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 tablets. Capturesque Pricing High Low High 11, 11 3, 15 Padmania Pricing Low 15, 3 9.9 For example, the lower-left cell shows that if Padmania prices low and Capturesque prices high, Padmania will earn a profit of $15 million, and Capturesque will earn a profit of $3 million. Assume this is a simultaneous game and that Padmania and Capturesque are both profit-maximizing firms. If Padmania prices high, Capturesque will make more profit if it chooses a _ price, and if Padmania prices low, Capturesque will make more profit if it chooses a * price. If Capturesque prices high, Padmania will make more profit if it chooses a * price, and if Capturesque prices low, Padmania will make more profit if it chooses a * price. Considering all of the information given, pricing high a dominant strategy for both Padmania and Capturesque. If the firms do not collude, what strategies will they is hoosing? is not Both Padmania and Capturesque will choos price. Padmania will choose a low price, and Capturesque will choose a high price. O Padmania will choose a high price, and Capturesque will choose a low price. Both Padmania and Capturesque will choose a low price. True or False: The game between Padmania and Capturesque is not an example of the prisoners' dilemma. O True False