Question: Please help me to answer questions below Consider the following payoff matrix in which the numbers indicate the profit in millions of dollars for a

Please help me to answer questions below

Please help me to answer questions below Consider the following payoff matrix

Consider the following payoff matrix in which the numbers indicate the profit in millions of dollars for a duopoly based either on a high-price or a low-price strategy for Firm A and Firm B. Firm A High-price Low-price A = $150 A = $200 High-price B = $150 B = $90 Firm B A = $90 A = $100 Low-price B = $200 B = $100 a. Explain the term "game theory". (3) b. What will be the result when each firm chooses a high-price strategy? (1.5) C. What will be the result when Firm A chooses a low-price strategy while Firm B maintains a high-price strategy? (1.5) d. What will be the result when Firm B chooses a low-price strategy while Firm A maintains a high-price strategy? (1.5) e. What will be the result when each firm chooses a low-price strategy? (1.5) f. What are the two conclusions can you draw if the two firms collude? Discuss. (6)

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