The payoff matrix shows all of the following EXCEPT
A. if one chooses a low price and the other doesn't, the low priced firm will make $8 million.
B. if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.
C. if they both choose a low price, each makes $4 million.
D. if both oligopolists choose a high price, each makes $6 million.
Answer: B
You might also like to view...
When the price of Ford pickup trucks rises from $18,000 to $19,000, the quantity of Chevy trucks demanded increases from 112,000 to 144,000. What does the cross elasticity of demand between Ford and Chevy trucks equal?
What will be an ideal response?
Wages for some workers do fall during a recession, but it is often:
A. too small of a wage decrease to contribute to economic recovery. B. only after the worker's current contract expires. C. only after the worker receives an annual performance evaluation. D. only after the worker is fired and gets rehired elsewhere at a lower wage.