Use the Following Table to Answer the Question : Table

question 44

Multiple Choice

Use the following table to answer the question : Table 15-3: 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.

-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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Definitions:

Cash Available

The amount of cash that a company or an individual has on hand or can easily access.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Stock Premium

The amount by which the selling price of a share exceeds its par value, also known as share premium.

Other Income

Revenues earned from activities that are not related to a company's primary business operations.