Refer to the following normal form game of price competition for questions 20 - 23.
-Suppose that Firm A deviates from a trigger strategy to support a high price.What is A's payoff from cheating?
Definitions:
Crude Quantity Theory
A basic hypothesis regarding the relationship between the quantity of money in an economy and its level of prices.
Constant
A value that remains unchanged throughout the scope of an equation, analysis, or experiment.
PQ
A notation commonly used in economics to represent the product of price (P) and quantity (Q), indicating the total revenue.
GDP
Gross Domestic Product, the total value of all goods and services produced within a country in a given period.
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