There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above
If National is able to cheat on the agreement but American complies with the agreement, what amount of economic profit is made by National? A) $2,000
B) $3,000
C) $4,000
D) $6,000
C
Economics
You might also like to view...
If an industry is made up of five identical firms, the four-firm concentration ratio is
A) 5%. B) 20%. C) 80%. D) 100%.
Economics
Moving along a country's PPF, a reason opportunity costs increase is that
A) unemployment decreases as a country produces more and more of one good. B) unemployment increases as a country produces more and more of one good. C) technology declines as a country produces more and more of one good. D) some resources are better suited for producing one good rather than the other. E) technology must advance in order to produce more and more of one good.
Economics