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Table B Pricing Matrix shows the pricing options for two mechanics, Angela and Tom, operating in an oligopoly market. Which of the following pricing strategy
Table B Pricing Matrix shows the pricing options for two mechanics, Angela and Tom, operating in an oligopoly market. Which of the following pricing strategy scenarios does Table 8 depict, when there are at least two pricing periods expected?
Table B Pricing Matrix | Mechanic Angela LOW Price | Mechanic Angela HIGH Price |
Mechanic Tom LOW Price | Mechanic Angela Charges LOW Price: gets $200 profit Mechanic Tom Charges LOW Price: gets $200 profit | Mechanic Angela Charges HIGH Price: gets $0 profit Mechanic Tom Charges LOW Price: gets $800 profit |
Mechanic Tom HIGH Price | Mechanic Angela Charges LOW Price: gets $800 profit Mechanic Tom Charges HIGH Price: gets $0 profit | Mechanic Angela Charges HIGH Price: gets $400 profit Mechanic Tom Charges HIGH Price: gets $400 profit |
Table 8 Pricing Strategy Scenario
TABLE 8 | 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 |
Mechanic Angela | High | $0 | Low | $200 | $200 |
Mechanic Tom | Low | $800 | Low | $200 | $1,000 |
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