Scenario: Payoff Matrix for Firms X and YThe following payoff matrix depicts the profits for the only two firmsin this oligopolistic industry.Firm YHigh PriceFirm X's profit: $1,800Firm Y's profit: $2,800Firm X's profit: $2,000Firm Y's profit: $2,400Low PriceFirm X's profit: $1,600Firm Y's profit: $2,500Firm X's profit: $1800Firm Y's profit: $2,200Low PriceFirm XHigh PriceReference: Ref 14-22(Scenario: Payoff Matrix for Firms X and Y) In the scenario PayoffMatrix for Firms X and Y, if firm X and firm Y wish to maximize jointprofit:X chooses Low Price and Y chooses Low Price, i.e L, LH, LO X chooses Low Price and Y chooses High Price, i.e L, HН, Н

Oligopolistic industry:- An oligopoly is a market structure in which a small number of enterprises…

Scenario: Payoff Matrix for Firms X and Y The following payoff matrix depicts the profits for the only two firms in this oligopolistic industry. Firm Y High Price Firm X's profit: $1,800 Firm Y's profit: $2,800 Firm X's profit: $2,000 Firm Y's profit: $2,400 Low Price Low Price Firm X's profit: $1,600 Firm Y's profit: $2,500 Firm X's profit: $1800 Firm Y's profit: $2,200 Firm X High Price Reference: Ref 14-22 (Scenario: Payoff Matrix for Firms X and Y) In the scenario Payoff Matrix for Firms X and Y, if firm X and firm Y wish to maximize joint profit: X chooses Low Price and Y chooses Low Price, i.e L, L Н, L X chooses Low Price and Y chooses High Price, i.e L, H O H, H