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The accompanying payoff matrix presents the profits for Firm A and Firm B under two pricing strategies. The accompanying payoff matrix presents the profits for

The accompanying payoff matrix presents the profits for Firm A and Firm B under two pricing strategies.

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The accompanying payoff matrix presents the profits for Firm A and Firm B under two pricing strategies. Firm A's strategy High price Low price Firm A Profit = $81 Firm A Profit = $99 High price Firm B Profit = $81 Firm B Profit = $47 Firm B's strategy Firm A Profit = $47 Firm A Profit = $73 Low price Firm B Profit = $99 Firm B Profit = $73 Suppose both firms have agreed to employ strategies that maximize their combined profits. How will the firms act? Firm A will Firm B will O Set a high price O Set a high price O Set a low price Set a low priceCompare the profits of Firm A when both firms respect the collusive agreement to the profits of Firm A when Firm A secretly cheats on the agreement. How much additional profit would Firm A earn by secretly cheating on the agreement to collude? Round your answer to the nearest whole number. Firm A's additional profit when cheating: $ Compare the profits of Firm A when both firms respect the collusive agreement to the profits of Firm A when both firms cheat on the agreement. By how much would the profit of Firm A fall if both firms cheat on the agreement to collude? Round your answer to the nearest whole number. Firm A's lost profits when both cheat: $

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