Answer the Next Question Based on the Following Payoff Matrix

question 176

Multiple Choice

Answer the next question based on the following payoff matrix for a duopoly.The numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy Refer to the above payoff matrix.Assume that firm Y adopts a low-price strategy while firm X maintains a high-price strategy.Compared to the results from a high-price strategy for both firms,firm Y will now:

• A) gain $100,000 in profit and firm X will lose $150,000 in profit.
• B) gain $150,000 in profit and firm X will lose $100,000 in profit.
• C) gain $525,000 in profit and firm X will lose $275,000 in profit.
• D) lose $150,000 in profit and firm X will gain $150,000 in profit.

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Definitions:

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Waking Hours

describes the period of the day when an individual is awake and engaged in activities, excluding sleep.

Mass Media

Various mediums of communication, such as television, newspapers, radio, and the internet, that reach large audiences and influence public opinion and information dissemination.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and can help people understand the difference between right and wrong.