Module 6 Homework Assignment i Saved Help Save & Exit Submit Check my work Refer to the profit payoff matrix, and then answer the following questions. All profit figures are in thousands. X's possible prices 10 $40 $35 points $57 B $59 eBook $40 Print $60 $55 References Y's possible prices $50 D $55 $35 $69 $58 a. Using the payoff matrix, X and Y are Mc Graw HillModule 6 Homework Assignment 0 Saved Help Save & Exit Submit 1 9 independent, because their profits depend on an agreed-upon price. (-3 independent, because their profits depend on their own price. @ interdependent, because their profits depend on an agreed-upon price. 10 rJu M 9 interdependent, because their profits depend notjust on their own price but also on the other firm's price. wow b. Using the payoff matrix, and assuming no collusion between X and Y, what is the likely pricing outcome? -'rim H k .- Both firms will set price at $35. Ru'erenccs 57 Both firms will set price at $40. C'- Firm X will charge $40 and firm Y will charge $35. ('3 Firm X will charge $35 and firm Y will Charge $40. c_ Price collusion is mutually profitable because each firm achieves (H'- increased sales. (6'; hinhnr nrn'FitI: % ELEM 1 of 10 Module 6 Homework Assignment i Saved Help Save & Exit Submit Check my work Firm x will charge $35 and firm Y will charge $40. c. Price collusion is mutually profitable because each firm achieves 10 points O increased sales. O higher profits. eBook O higher productivity. O lower costs. Print References d. Firms might be tempted to cheat on the collusive agreement because each firm could achieve higher profits. O lower costs. O increased sales. O higher productivity. Mc Graw Hill