Answer the question based on the following peyoff matrix for e duopoly in which

Question

Answer the question based on the following peyoff matrix for e duopoly in which the numbers indcate the profe in milons of dollars for each m Firm A A-S250 | A-S325 B$250 B $200 A $200 A $175 B $325 B-$175 Refer to the above payot matrix hat fim 8 edopts a low price ststegy while Sim A matans a gh price stretegy C rm B will n O Lose $75 mition in proft and fiem A will gein $50 mition in proft O Gein $50 miion in proft and frm A will lose $50 milion in profit O Gain $75mition in profs and Sm A well lose $50 mlion in proft O Gein $50 milion in proft and fom A wil ose $75 milion in proft

Explanation / Answer

Answer:

Firm B will now:

Gain $75 million in profit and firm A will lose $50 million in profit.

Because A has adopted high price policy while B has adopted low price policy so demand for B’s product will increase in the market and demand of A’s product will reduce so A have to bear lose

*from next time please post clear image it is really hard to read the question

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