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Business, 11.12.2019 03:31 yvngtazz

scenario: two rival firms charge equal prices for their products, which are perfect substitutes. firm 1 is considering offering a 10% discount on the market price to increase sales. the game tree below shows the respective payoffs to each firm, depending on the decisions each makes. refer to the scenario above. which of the following is true?
a. firm 2 should offer a discount if firm 1 offers a discount.
b. firm 1 should never choose to offer a discount.
c. firm 1 should randomly offer a discount.
d. firm 2 should never offer a discount

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