Alaska and Delta are the only two airlines that offer direct flights between Seattle and Anchorage. They could both offe

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Alaska And Delta Are The Only Two Airlines That Offer Direct Flights Between Seattle And Anchorage They Could Both Offe 1 (39.15 KiB) Viewed 30 times

Alaska and Delta are the only two airlines that offer direct flights between Seattle and Anchorage. They could both offer a high price each would earn positive economic profits of $2 million. Or they could both offer a low price: each would earn zero economic profits. If one offers a high price and the other offers a low price, then the airline offering a low price will earn twice the profit, while the airline offering a high price will suffer an economics foss of $1 million (as it will sell few tickets) Complete the two-by-two matrix below. For payoffs, use numbers consistent with the description above (Enter your answers as a whole number) Alaska Airlines (AA) High Price Low Price High Price AA earns $ DA earns $ AA ears S DA earns $ Delta Airlines (DA) million million million million Low Price AA earns S DA earns $ AA earns $ DA earns $ million million milion million