Each firm in the market sells the exact same course notes for a difficult course. Each semester, each firm in the market simultaneously chooses its price. You choose a price by selecting a number, and then pressing the Set Price button.
If firm 1 chooses $9 and firm 2 chooses $10:
Payoff | = | items sold | x | (price - cost) | ||
---|---|---|---|---|---|---|
Firm 1 | = | 1800 | x | ($9 - $2) | = | $12,600 |
Firm 2 | = | 0 | x | ($10 - $2) | = | $0 |