Table 16-2 In the Following Duopoly Game, the Two Firms Can Either

question 6

Multiple Choice

Table 16-2
In the following duopoly game, the two firms can either set the price of their product high or low. If one firm's price is lower than the other, most of the market will buy from them. This will increase the low-price firm's profit at the expense of the other firm. The game is represented in the table below.

-Refer to Table 16-2. What is the profit firm B will earn if it plays its dominant strategy:

• A) $1000 if firm B has a high price and $1500 if firm B has a low price
• B) $1000 if firm B has a high price and $800 if firm B has a low price
• C) $800 if firm B has a high price and $1250 if firm B has a low price
• D) $800 if firm B has a high price and $1500 if firm B has a low price

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Definitions:

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Rooftops covered with vegetation and soil or a growing medium, installed over a waterproof membrane, to improve building insulation, reduce urban heat islands, and create habitats.

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Systems that use the stable underground temperature to provide heating, cooling, and hot water for buildings.

Geothermal Exchange

The process of using the Earth's constant underground temperature to heat and cool buildings.