The total of all planned expenditures in the entire economy is

Refer to the below payoff matrix. If the two firms collude to maximize joint profits:

Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:



A. There will be an incentive for Firm A to cheat and earn more if Firm B does not switch strategies
B. There will be an incentive for Firm B to cheat and earn more if Firm A does not switch strategies
C. There will be no incentive for either Firm A or Firm B to cheat
D. There will be incentives for both Firm A and Firm B to cheat

The Organization of Petroleum Exporting Countries (OPEC) is an international cartel. If the cartel were to hire a consulting firm to monitor the production rates of member countries, the economic reason for this monitoring is to:

A. Make sure that each member country is producing at an output level at which price equals marginal cost B. Make sure all the member countries produce at least their quotas so that there will be no oil shortage C. Detect those member countries which are depressing prices by producing more than their assigned quotas D. Make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price