Question: 1. Assume that this is a simultaneous move, one shot game, i.e., each player moves simultaneously, and the game is played once. The firms are

1. Assume that this is a simultaneous move, one shot game, i.e., each player moves simultaneously, and the game is played once. The firms are not allowed to collude and make joint decisions. The two

1. Assume that this is a simultaneous move, one shot game, i.e., each player moves simultaneously, and the game is played once. The firms are not allowed to collude and make joint decisions. The two firms face the following profit matrix. The number in the table show the profit for each firm from each outcome

firms face the following profit matrix. The number in the table show

the profit for each firm from each outcome Firm 2 Low Price

Firm 2 Low Price High Price 400 600 Low Price 400 100 Firm 1 100 200 High Price 600 200\fFirm B Low Price High Price Firm A Low Price (2, 2) (10, -8) High Price (-8, 10) (15, 15)

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