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
C. There will be no incentive for either Firm A or Firm B to cheat
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Refer to Table 13-1. What is the marginal revenue of the 3rd unit?
A) $6.50 B) $5.50 C) $1.83 D) $0.50
An advantage to exchange-rate targeting is it helps keep inflation under control by tying the inflation rate for ________ traded goods to what is found in the ________ country
A) domestically; anchor B) domestically, domestic C) internationally; anchor D) internationally; domestic