Question: Table B Pricing Matrix shows the pricing options for two mechanics, Angela and Tom, operating in an oligopoly market. Which of the following pricing strategy

Table B Pricing Matrix shows the pricing options for two mechanics, Angela and Tom, operating in an oligopoly market. Which of the following pricing strategy scenarios does Table 7 depict, when there are at least two pricing periods expected?

Table B Pricing Matrix Mechanic Angela LOW Price Mechanic Angela HIGH Price
Mechanic Tom LOW Price Mechanic Angela Charges LOW Price: gets $200 profit Mechanic Tom Charges LOW Price: gets $200 profit Mechanic Angela Charges HIGH Price: gets $0 profit Mechanic Tom Charges LOW Price: gets $800 profit
Mechanic Tom HIGH Price Mechanic Angela Charges LOW Price: gets $800 profit Mechanic Tom Charges HIGH Price: gets $0 profit Mechanic Angela Charges HIGH Price: gets $400 profit Mechanic Tom Charges HIGH Price: gets $400 profit

Table 7 Pricing Strategy Scenario

TABLE 7 First Period Price Choice (High or Low) First Period Profit Second Period Price Choice (High or Low) Second Period Profit Total Profit for both periods
Mechanic Angela Low $200 Low $200 $400
Mechanic Tom Low $200 Low $200 $400

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