Abbott and Costello Are Two Firms That Compete with Each

question 45

Multiple Choice

Abbott and Costello are two firms that compete with each other in the market for ice-cream.They can price their product at a high,medium,or low price.The following matrix shows their profits from their respective pricing strategies.
Table 15-3
-Refer to Table 15-3.When Costello chooses the low-pricing strategy,Abbott's highest possible profit is:

• A)$50
• B)$21
• C)$107
• D)$115

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