The Following Matrix Shows the Pricing Strategies and Resultant Profits

question 7

Multiple Choice

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

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Definitions:

Dishonored

Referring to a financial instrument, such as a check or promissory note, that is not accepted or paid when presented for payment.

Note

A promise by the maker of the note to pay the payee of the note.

Reasonable Identification

The process of sufficiently identifying an individual through the use of valid and reliable means or documents.

Fraud In The Factum

A liability defense available to a party who signs a negotiable instrument without knowing that it is a negotiable instrument.