Oligopolists seldom change prices, because they don’t like change.

An exception to the law of one price occurs if

A) the good is not tradeable. B) demand for the good is stronger in some countries than in others. C) exchange rates are flexible, rather than fixed. D) interest rates differ across countries.

Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco?

A) high price B) low price C) There is no best strategy. D) Not enough information is given to determine the best strategy.