The Following Matrix Shows the Pricing Strategies and Resultant Profits

question 13

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 B sets a high price, Firm A will:

• A) earn a profit equal to $41,000.
• B) earn a profit equal to $35,000.
• C) earn a higher profit than Firm B.
• D) earn the same profit as firm F which is equal to $30,000.
• E) follow the low-price strategy.

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Definitions:

Labor-Force Participation Rate

The percentage of the working-age population that is in the labor force, including both employed and unemployed individuals.

Employed

The state of having paid work or being engaged in an activity or enterprise as a means of earning an income.

Labor-Force Participation Rate

The proportion of the adult population that is either employed or actively looking for employment.

Marginally Attached Workers

Individuals not currently in the labor force who have looked for work within the last year but not in the last four weeks, often due to temporary barriers.