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Alpha Corp. Alpha Corp.
Long Short
Omega Corp. Long 4000, 4500 5500, 8500
Omega Corp. Short 7500, 7000 8000, 6500

The payoff matrix above shows the possible earnin​gs for Omega and Alpha, two corporations who compete within the same market and must each decide on either a long or short strategy. The first entry in each cell shows Omega Corp.’s expected revenue while the second entry shows Alpha Corp.’s expected earnings.​

If the firms compete freely within the market, what will be Alpha Corp.’s likely earnings?

A

8,000

B

7,000

C

5,500

D

7,500

E

8,500

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