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The Following Table Shows the Pay-Off Matrix for West Ltd

question 18

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The following table shows the pay-off matrix for West Ltd. and East Ltd. in an oligopolistic market. Each firm has two options: co-operate or start a price war. Refer to the table to answer the question. The following table shows the pay-off matrix for West Ltd. and East Ltd. in an oligopolistic market. Each firm has two options: co-operate or start a price war. Refer to the table to answer the question.   East Ltd. earns its maximum pay-off when _____. A)  West Ltd. co-operates but East Ltd. begins a price war B)  it co-operates but West Ltd. begins a price war C)  both the firms co-operate D)  both the firms begin a price war East Ltd. earns its maximum pay-off when _____.


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