6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low High 11, 11 3, 15 Flashfone Pricing Low 15, 3 9. 9 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms. If Flashfone prices high, Pictech will make more profit if it chooses a _ price, and if Flashfone prices low, Pictech will make more profit if it chooses price. If Pictech prices high, Flashfone will make more profit if it chooses a * price, and if Pictech prices low, Flashfone will make more profit if it chooses price. high ng all of the information given, pricing low_ a dominant strategy for both Flashfone and Pictech. low If we muns do not collude, what strategies will they end up choosing? O Both Flashfone and Pictech will choose a low price. O Flashfone will choose a low price, and Pictech will choose a high price. O Flashfone will choose a high price, and Pictech will choose a low price. O Both Flashfone and Pictech will choose a high price. True or False: The game between Flashfone and Pictech is an example of the prisoners' dilemma. O True False Grade It Now Save & Continue Continue without saving