Bert and Ernie are non-colluding oligopolists. If both choose a high price strategy, each makes $40 in profits; if both choose a low price strategy, each makes $30 in profits. If Bert chooses a high price strategy and Ernie chooses a low price strategy, Bert makes $20 in profits and Ernie makes $60 in profits, while if Bert chooses a low price strategy and Ernie chooses a high price strategy, Bert makes $60 in profits and Ernie makes $20 in profits. Which combination of pricing strategies would you expect Bert and Ernie to adopt if they act independently?
A. Both choose a high price strategy.
B. Both choose a low price strategy.
C. Bert chooses a high price strategy and Ernie chooses a low price strategy.
D. Bert chooses a low price strategy and Ernie chooses a high price strategy.
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bert and Ernie are non-colluding oligopolists. If both choose a high price strategy, each makes $40 in profits; if both choose a low price ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » Bert and Ernie are non-colluding oligopolists. If both choose a high price strategy, each makes $40 in profits; if both choose a low price strategy, each makes $30 in profits.