-Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the best strategy for Greenco if Ajax decides on charging a low price?
A) High price.
B) Low price.
C) There is no best strategy.
D) Not enough information is given to determine the best strategy.

Question

-Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the best strategy for Greenco if Ajax decides on charging a low price?
A) High price. 
B) Low price. 
C) There is no best strategy. 
D) Not enough information is given to determine the best strategy.

Quizplus · Accepted Answer

If Ajax charges a low price, Greenco's best response is to also charge a low price to avoid losing market share and to maximize its payoff in the given scenario.

-Refer to the Above Figure