The Following Matrix Shows the Pricing Strategies and Resultant Profits

question 48

Multiple Choice

The following matrix shows the pricing strategies and resultant profits (in thousands of dollars) for two profit-maximizing firms.
Table 9-1
$\begin{array} {c}\quad\quad \text { Firm B} \\\begin{array}{ | c | c | c | } \hline \text { Firm } \mathrm { A } & \text { High } & \text { Low } \\\hline \text { High price } & 35,35 & 21,41 \\\hline \text { Low price } & 37,21 & 30,30 \\\hline\end{array} \end{array}$
-Refer to Table 9-1. If Firm A sets a high price, Firm B will:

• A) also set a high price.
• B) earn a profit of $35,000.
• C) follow the low-price strategy.
• D) earn a profit of $30,000.
• E) earn a lower profit than Firm A.

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Definitions:

Artisan's Lien

A legal claim or hold on property created by workers who have repaired or improved it, ensuring payment for their services.

Mechanic's Lien

An interest in property title for the advantage of individuals who provided work or materials to enhance the property.

Writ of Attachment

A court order that allows for the seizure of a debtor's property in order to secure the satisfaction of a judgment.

Writ of Execution

A court order granting permission to enforce a judgment, typically by allowing for the seizure or sale of the debtor's property.