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Table B shows the pricing options for two medical doctors operating as an oligopoly in a rural market. Which of the following pricing strategies does
Table B shows the pricing options for two medical doctors operating as an oligopoly in a rural market. Which of the following pricing strategies does Table 10 depict? Table B
Pricing strategies Dr. Good charges LOW Price | Pricing strategies Dr. Good charges HIGH Price |
---|---|
If Dr. Good and Dr. Fine both charge LOW price, BOTH get $350 each | If Dr. Good charges the HIGH PRICE and Dr. Fine charges the LOW PRICE, Dr. Good GETS $0, and Dr. Fine gets $700 |
If Dr. Fine charges HIGH PRICE and Dr. Good charges LOW PRICE, Dr. Fine gets $0 and Dr. Good gets $700 | If Dr. Good and Dr. Fine both charge the HIGH PRICE, BOTH get $500 each |
TABLE 10 | First Period Choose High or low price | First Period Profit | Second Period Choose High or low price | Second Period Profit | Total Profit in both periods |
---|---|---|---|---|---|
Dr. Good | High | $500 | High | $500 | $1,000 |
Dr. Fine | High | $500 | High | $500 | $1,000 |
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