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Question
Two firms operating in the same market must choose between a collude price and a cheat price. Firm A's profit is listed before the comma, B's outcome after the comma.
If each firm tries to choose a price that is best for it, regardless of the other firm's price, which of these statements is correct?
A) Firm A should charge the collude price, Firm B should charge a cheat price.
B) Firm A should charge a cheat price, Firm B should charge a collude price.
C) Both firms should charge a collude price.
D) Both firms should charge a cheat price.
Answer
This answer is hidden. It contains 1 characters.
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