Chevrolet will match any price it sets? I'm confused about figuring out this question. Can anyone help me?
The number doesn't look right so do your best to figure out where it belongs
Ford’sChevrolet’sFord’sChevrolet’s
SellingSellingProfitsProfits
Price Price(millions) (millions)
$ 4,000$ 4,000$ 8 $ 8
4,000 8,000 12 6
4,000 12,000 14 2
8,000 4,000 6 12
8,000 8,000 10 10
8,000 12,000 12 6
12,000 4,000 2 14
12,000 8,000 6 12
12,000 12,000 7 7
a.What price will Ford charge?
b.What price will Chevrolet charge once Ford has set its price?
c.What is Ford’s profit after Chevrolet’s response?
d.If the two firms collaborated to maximize joint profits, what prices would they set?
e.Given your answer to part (d), how could undetected cheating on price cause the cheating firm’s profit to rise?
The number doesn't look right so do your best to figure out where it belongs
Ford’sChevrolet’sFord’sChevrolet’s
SellingSellingProfitsProfits
Price Price(millions) (millions)
$ 4,000$ 4,000$ 8 $ 8
4,000 8,000 12 6
4,000 12,000 14 2
8,000 4,000 6 12
8,000 8,000 10 10
8,000 12,000 12 6
12,000 4,000 2 14
12,000 8,000 6 12
12,000 12,000 7 7
a.What price will Ford charge?
b.What price will Chevrolet charge once Ford has set its price?
c.What is Ford’s profit after Chevrolet’s response?
d.If the two firms collaborated to maximize joint profits, what prices would they set?
e.Given your answer to part (d), how could undetected cheating on price cause the cheating firm’s profit to rise?