-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

Given Ajax chooses a low price, Greenco's best response is to also choose a low price to maximize its payoff, as indicated in a typical payoff matrix in oligopoly scenarios.

-Refer to the Above Figure