Find each firms dominant strategy

Reference no: EM132723636

Consider two firms in Australian market.The table below depicts each firm"s profits depending on ehat price both firms charge.

Question 1) Find (if any) each firms dominant strategy

Question 2) Which strategy does each firm choose in equlibrium when collusion (joint agreement) is not allowed?

Question 3) Suppose that collusion is allowed between the two times.Could these firms benefit from collusion? why or why not?

Reference no: EM132723636

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