The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1

-Refer to Table 9-1.If Firm A sets a high price,Firm B will _____.
A)also set a high price
B)earn a profit of $35,000
C)follow the low-price strategy
D)earn a profit of $30,000
E)earn a lower profit than firm A

Question

The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1
 
-Refer to Table 9-1.If Firm A sets a high price,Firm B will _____.
A)also set a high price 
B)earn a profit of $35,000 
C)follow the low-price strategy 
D)earn a profit of $30,000 
E)earn a lower profit than firm A

Quizplus · Accepted Answer

The Answer of The following matrix shows the pricing strategies and resultant profits (in thousands of dollars)for two profit-maximizing firms.
Table 9-1
 
-Refer to Table 9-1.If Firm A sets a high price,Firm B will _____.
A)also set a high price 
B)earn a profit of $35,000 
C)follow the low-price strategy 
D)earn a profit of $30,000 
E)earn a lower profit than firm A

The Following Matrix Shows the Pricing Strategies and Resultant Profits