Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech PricingHighLowFlashfone PricingHigh11, 113, 15Low15, 39, 9 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.If Flashfone prices high, Pictech will make more profit if it chooses a price, and if Flashfone prices low, Pictech will make more profit if it chooses a price. If Pictech prices high, Flashfone will make more profit if it chooses a price, and if Pictech prices low, Flashfone will make more profit if it chooses a price. Considering all of the information given, pricing high a dominant strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing?Flashfone will choose a low price, and Pictech will choose a high price. Flashfone will choose a high price, and Pictech will choose a low price. Both Flashfone and Pictech will choose a low price. Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is not an example of the prisoners’ dilemma.True False * MindTap - Cengage Learningb Answered: Homework (Ch 17) En x+A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323&E Apps M GmailA Maps A clickserve.dartsearc.E Reading listYouTube«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 17)6. Using a payoff matrix to determine the equilibrium outcomeCoursesSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars)O Catalog and Study Toolseach company will earn, depending on whether it sets a high or low price for its phones.A-ZEE Rental OptionsP College Success TipsPictech PricingHighLowCareer Success TipsHigh11, 113, 15Flashfone Pricing? HelpLow15, 39, 9O Give FeedbackFor example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech willearn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.bongoIf Flashfone prices high, Pictech will make more profit if it chooses aprice, and if Flashfone prices low, Pictech will make more profit if itchooses av price.highIf Pictech prices high, Flashfone will make more profit if it chooses alowprice, and if Pictech prices low, Flashfone will make more profit if itchooses aprice.Considarina all nf the information niven pricins bighdaminant atrateov for bath clachfons and Dictech1:39 PMO Type here to search30%68°FO O O 4)12/1/2021x ... * MindTap - Cengage Learningb Answered: Homework (Ch 17) En x+A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323&E Apps M GmailA Maps A clickserve.dartsearc.E Reading listYouTube«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 17)If Flashfone prices high, Pictech will make more profit if it chooses av price, and if Flashfone prices low, Pictech will make more profit if itCourseschooses av price.O Catalog and Study ToolsIf Pictech prices high, Flashfone will make more profit if it chooses aprice, and if Pictech prices low, Flashfone will make more profit if itA-ZEE Rental Optionschooses aprice.- College Success TipsConsidering all of the information given, pricing higha dominant strategy for both Flashfone and Pictech.Career Success TipsIf the firms do not collude, what strategies will they eishoosing?? Helpis nothoose a high price.O Flashfone will choose a low price, and PicteO Give FeedbackO Flashfone will choose a high price,Pictech willa low price.O Both Flashfone and Pictech will choose a low price.O Both Flashfone and Pictech will choose a high price.bongeTrue or False: The game between Flashfone and Pictech is not an example of the prisoners' dilemma.O TrueO False1:39 PMP Type here to searchL30%68°FO O O 4)12/1/2021x ...近

Question

Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech PricingHighLowFlashfone PricingHigh11, 113, 15Low15, 39, 9 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.If Flashfone prices high, Pictech will make more profit if it chooses a    price, and if Flashfone prices low, Pictech will make more profit if it chooses a    price. If Pictech prices high, Flashfone will make more profit if it chooses a    price, and if Pictech prices low, Flashfone will make more profit if it chooses a    price. Considering all of the information given, pricing high    a dominant strategy for both Flashfone and Pictech. If the firms do not collude, what strategies will they end up choosing?Flashfone will choose a low price, and Pictech will choose a high price. Flashfone will choose a high price, and Pictech will choose a low price. Both Flashfone and Pictech will choose a low price. Both Flashfone and Pictech will choose a high price.  True or False: The game between Flashfone and Pictech is not an example of the prisoners’ dilemma.True False * MindTap - Cengage Learningb Answered: Homework (Ch 17) En x+A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323&E Apps M GmailA Maps A clickserve.dartsearc.E Reading listYouTube«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 17)6. Using a payoff matrix to determine the equilibrium outcomeCoursesSuppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars)O Catalog and Study Toolseach company will earn, depending on whether it sets a high or low price for its phones.A-ZEE Rental OptionsP College Success TipsPictech PricingHighLowCareer Success TipsHigh11, 113, 15Flashfone Pricing? HelpLow15, 39, 9O Give FeedbackFor example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech willearn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.bongoIf Flashfone prices high, Pictech will make more profit if it chooses aprice, and if Flashfone prices low, Pictech will make more profit if itchooses av price.highIf Pictech prices high, Flashfone will make more profit if it chooses alowprice, and if Pictech prices low, Flashfone will make more profit if itchooses aprice.Considarina all nf the information niven pricins bighdaminant atrateov for bath clachfons and Dictech1:39 PMO Type here to search30%68°FO O O 4)12/1/2021x ... * MindTap - Cengage Learningb Answered: Homework (Ch 17) En x+A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&id=1270090919&snapshotld=2556323&E Apps M GmailA Maps A clickserve.dartsearc.E Reading listYouTube«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 17)If Flashfone prices high, Pictech will make more profit if it chooses av price, and if Flashfone prices low, Pictech will make more profit if itCourseschooses av price.O Catalog and Study ToolsIf Pictech prices high, Flashfone will make more profit if it chooses aprice, and if Pictech prices low, Flashfone will make more profit if itA-ZEE Rental Optionschooses aprice.- College Success TipsConsidering all of the information given, pricing higha dominant strategy for both Flashfone and Pictech.Career Success TipsIf the firms do not collude, what strategies will they eishoosing?? Helpis nothoose a high price.O Flashfone will choose a low price, and PicteO Give FeedbackO Flashfone will choose a high price,Pictech willa low price.O Both Flashfone and Pictech will choose a low price.O Both Flashfone and Pictech will choose a high price.bongeTrue or False: The game between Flashfone and Pictech is not an example of the prisoners' dilemma.O TrueO False1:39 PMP Type here to searchL30%68°FO O O 4)12/1/2021x ...近

Accepted Answer

Answered: Image /qna-images/answer/6ef8bd70-b001-44ce-9196-fefe87a6fbde.jpg

	Pictech Pricing
High	Low
Flashfone Pricing	High	11, 11	3, 15
Low	15, 3	9, 9