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Posted: **Sun Jul 03, 2022 6:57 am**

: 10 Two Firms Atlantis And Bacchus Compete Primarily By Price Each Firm Chooses Either A High Price Or A Low Price Si 1 (102.53 KiB) Viewed 25 times

10. Two firms, Atlantis and Bacchus, compete primarily by price. Each firm chooses either a high price or a low price simultaneously. The following payoff table shows the profit each firm would earn in each of the four possible decision combinations. Atlantis price High Low A C High Bacchus price $10,000, $10,000 $20,000, $5,000 B D Low $5,000, $20,000 $8,000, $8,000

(f) Is this decision situation a prisoners' dilemma? Explain why or why not. (g) Is cell C strategically stable? Explain why or why not. (h) Is cell D strategically stable? Explain why or why not.