Refer to Table 14 2 For each firm is there a better outcome than the current

Refer to table 14 2 for each firm is there a better

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61)Refer to Table 14-2.For each firm, is there a better outcome than the current situation in whicheach firm charges the low price and earns a profit of $7,000?A) Yes, each firm can implicitly agree to increase output and not to deviate from a low price.B) No, any other strategy hurts consumers.C) Yes, the firms can implicitly collude and agree to charge a higher price.D) No, there is no incentive for each firm to consider any other strategy.Answer: C61)Diff: 2Page Ref: 464/464Topic: CollusionLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic Skills62)Refer to Table 14-2.Suppose Wal-Mart and Target both advertise that they will match the lowestprice offered by any competitor. What is the purpose of such a strategy?62)Diff: 2Page Ref: 468/468Topic: Business StrategyLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic Skills63)Refer to Table 14-2.Suppose pricing PlayStations is a repeated game in which Wal-Mart andTarget will be selling the game system in competition over a long period of time. In this case, whatis the most likely outcome?63)Diff: 2Page Ref: 468/468Topic: Game TheoryLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic Skills17

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