Question

multiple choice question suppose rareair honors an agreement to price high with uptown. based on the figure, if uptown cheats and prices low instead of high, then uptown can increase its payout by $______ million. o 9 o 6 o 3 o 8

Explanation:

Step1: Identify payouts

When both price high (top - left cell), Uptown's payout is $12$ million. When RareAir prices high and Uptown prices low (bottom - left cell), Uptown's payout is $15$ million.

Step2: Calculate increase

Subtract the initial payout from the new payout. $15 - 12=3$ million.

Answer:

3