Table 14-8 Two Rival Oligopolists in the Athletic Supplements Industry, the Power

question 88

Multiple Choice

Table 14-8

Two rival oligopolists in the athletic supplements industry, the Power Fuel Company and the Brawny Juice Company, have to decide on their pricing strategy.Each can choose either a high price or a low price.Table 14-8 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 14-8.If the firms cooperate, what prices will they select?

• A)Both firms will select a low price.
• B)Brawny Juice will select a high price; Power Fuel a low price.
• C)Both firms will select a high price.
• D)Brawny Juice will select a low price; Power Fuel a high price.

---

Definitions:

Intrinsic Motivation

A drive to engage in activities for their own sake, due to internal rewards like satisfaction and joy, rather than for external rewards.

Schoolwork

Tasks assigned by teachers, intended to be completed by students outside of class, to reinforce learning.

Algorithm

A step-by-step procedure or formula for solving a problem or completing a task, often used in computing and mathematics.

Availability Heuristic

An intellectual quick path that is based on the prompt examples that surface in an individual's memory when thinking about a certain topic, idea, approach, or decision.