Using the payoff matrix, X and Y are interdependent, because their profits depend on an agreed-upon price. independent, because their profits depend on their own price. independent, because their profits depend on an agreed-upon price. interdependent, because their profits depend not just on their own price but also on the other firm’s price. b. Using the payoff matrix, and assuming no collusion between X and Y, what is the likely pricing outcome? Firm X will charge $35, and firm Y will charge $40. Both firms will set price at $40. Firm X will charge $40, and firm Y will charge $35. Both firms will set price at $35. c. Refer to the matrix above. Price collusion is mutually profitable because each firm would achieve higher productivity. increased sales. lower costs. higher profits. d. There might be a temptation to cheat on the collusive agreement because each firm could achieve increased sales. lower costs. higher profits. higher productivity.