10. The following matrix shows the strategies of At & T and Verizon for charges

Question

10.
The following matrix shows the strategies of At & T and Verizon for charges for long distance calls. The payoff matrix shows the profits each makes in millions of dollars. Read the table for Verizons' strategies column-wise and A T & T's strategies row-wise. Suppose Verizon and AT &T can each charge 40 cents and 30 cents a minute for long distance calls. If both firms could collude Verizon would charge ----- and AT&T would charge -----



Verizon's pricing strategies
A T & T 40 cents 30 cents
Pricing 40 cents
V: $450

A: $450

V: 500

A: $200

Strategies 30 cents
V: 200

A: $500

V: $300

A: $300



A) 30c,40c
B) 40c, 40c
C) 40c, 30c
D) 30c, 30c

Explanation / Answer

B) 40c, 40c

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.