The Following Payoff Matrix Represents a Duopoly in Which the Numbers

question 63

Multiple Choice

The following payoff matrix represents a duopoly in which the numbers indicate the profit (in thousands of dollars) for a high-price or a low-price strategy.
-Refer to the above payoff matrix.Assume that firm Y adopts a low-price strategy,while firm X maintains a high-price strategy.Compared to the results from a high-price strategy for both firms,firm Y will now ________ and firm X will ________.

• A) gain $100,000 in profit;lose $150,000 in profit
• B) gain $150,000 in profit;lose $100,000 in profit
• C) gain $525,000 in profit;lose $275,000 in profit
• D) lose $150,000 in profit;gain $150,000 in profit
• E) lose $100,000 in profit;gain $100,000 in profit

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Definitions:

Nervios

A culturally specific syndrome found in Latin American communities, characterized by emotional distress and somatic symptoms like headaches and stomachaches, often in response to stress.

Mal De Ojo

A belief in many cultures that illness or misfortune can be caused by the evil eye or a malicious look.

Amok

A culturally bound syndrome primarily reported in Southeast Asia, involving a sudden outburst of unprovoked aggression and violence.

Hippocampus

A crucial part of the brain associated with memory formation and spatial navigation.