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Table A shows the pricing options for two drone operators, Andrew and Jasmine, as an oligopoly in a local market. Which of the following pricing
Table A shows the pricing options for two drone operators, Andrew and Jasmine, as an oligopoly in a local market. Which of the following pricing strategy scenarios does Table 2 depict, when there are at least two pricing periods expected?
Table A | Drone Operator AndrewLOW Price | Drone Operator AndrewHIGH Price |
Drone Operator Jasmine LOW Price | Drone Operator Andrew Charges LOW Price: gets $1,000 profit Drone Operator Jasmine Charges LOW Price: gets $1,000 profit | Drone Operator Andrew Charges HIGH Price: gets $0 profit Drone Operator Jasmine Charges LOW Price: gets $2,000 profit |
Drone Operator JasmineHIGH Price | Drone Operator Andrew Charges LOW Price: gets $2,000 profit Drone Operator Jasmine Charges HIGH Price: gets $0 profit | Drone Operator Andrew Charges HIGH Price: gets $1,500 profit Drone Operator Jasmine Charges HIGH Price: gets $1,500 profit |
Table 2 Pricing Strategy Scenario
TABLE 2 | First Period Price Choice (High or Low) | First Period Profit | Second Period Price Choice (High or Low) | Second Period Profit | Total Profit for both periods |
Andrew | Low | $1,000 | Low | $1,000 | $2,000 |
Jasmine | Low | $1,000 | Low | $1,000 | $2,000 |
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