Attempts: core:s Today at 01:54 P The following table shows the payoff matrix of

Question

Attempts: core:s Today at 01:54 P The following table shows the payoff matrix of the two firms (Firm X and Firm Y) in dollars when they advertise and when they do not advertise Table Firm X Advertise |Firm×100 |Firm× 50 Firm Y Firm X 180 Firm X 150 Not Advertise Firm Y 80 Firm Y 180 25.1 According to the Table 25.1, if the firms collude and decide not to advertise their combined payoff is: O. $330. Q06. $250. O c $280 d.3300. an Terms of Use Privacy Notice Security Notice Copyright Notices ne ge 1.06 PM

Explanation / Answer

Correct Answer:

A.$330

Working note:

If firms collude and don’t advertise, then:

Payoff for the firm X = $150

Payoff for the firm Y = $180

So, combined payoff = 150+180 = $330

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