Table: Tractors Ben's Strategies Betsy's Strategies Low Price High Price Low Price $150,000, $150,000 High Price $500,000, $100,000 $100,000, $500,000 $300,000, $300,000 The table presents the profits earned by the two tractor stores in a farm town, Betsy's Tractors and Ben's Farm Supplies. Profits are based on the price per tractor each producer sells. Betsy's profits are listed first in each cell, and Ben's are listed second. If Betsy chooses to charge a low price, charging a price is the best strategy for Ben. If Betsy chooses to charge a high price, charging a price is the best strategy for Ben. a. high; high b. high; low c. low; high d. low; low

Table: Tractors Ben's Strategies Betsy's Strategies Low Price High Price Low Price $150,000, $150,000 High Price $500,000, $100,000 $100,000, $500,000 $300,000, $300,000 The table presents the profits earned by the two tractor stores in a farm town, Betsy's Tractors and Ben's Farm Supplies. Profits are based on the price per tractor each producer sells. Betsy's profits are listed first in each cell, and Ben's are listed second. If Betsy chooses to charge a low price, charging a price is the best strategy for Ben. If Betsy chooses to charge a high price, charging a price is the best strategy for Ben. a. high; high b. high; low c. low; high d. low; low

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 9PA

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