ven the payoff matrix below, answer the following questions:

Company D

Company C

High Prices

Low Prices

High Prices

Company C

$

170,000

Company D

$

170,000

Company C

$

70,000

Company D

$

200,000

Low Prices

Company C

$

200,000

Company D

$

70,000

Company C

$

220,000

Company D

$

220,000

a)Using the payoff matrix, what is the appropriate description of the mutual interdependence that characterizes oligopolistic industries?The firms C and D are interdependent because their profits depend not just on their own price, but also on the other firm's price.The firms C and D are dependent because their profits depend not just on their own price, but also on the other firm's price.None of the descriptions are appropriate in this situation.The firms C and D are interdependent because their profits depend only on their own price.

b)Assuming no collusion between Company C and Company D, what is the likely profit outcome of Company C?

Profit outcome = $

0

c)Assuming no collusion between Company C and Company D, what is the likely profit outcome of Company D?

Profit outcome = $

0