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-Sears and Wal-Mart Must Decide Whether to Lower Their Prices

question 197

Multiple Choice

  -Sears and Wal-Mart must decide whether to lower their prices, based on the economic profits shown in the table above. Which of the following is TRUE? A)  This situation is not a prisoners' dilemma. B)  If Sears lowers its prices and Wal-Mart does not, Sears will make a $20 million economic profit. C)  If Wal-Mart lowers its prices, Sears should keep its prices high. D)  Both Sears and Wal-Mart would jointly be better off if they could each keep their prices high.
-Sears and Wal-Mart must decide whether to lower their prices, based on the economic profits shown in the table above. Which of the following is TRUE?


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