Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175Refer to the above payoff matrix. If both firms collude to maximize joint profits, the total profits for the two firms combined will be:
A. $400 million.
B. $500 million.
C. $250 million.
D. $350 million.
Answer: B
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A) governments and financial institutions B) lenders and borrowers C) wholesalers and retailers D) bankers and regulators E) households and firms
The above diagram shows the cost curves for a perfectly competitive wheat farmer
At what price(s) does the wheat farmer make an economic profit? Make zero economic profit? Incur an economic loss? How many bushels of wheat does the farmer produce if the price is $3 per bushel? If the price is $0.50 per bushel?
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A) is not required under the price system. B) is required because of scarcity. C) must be done by the government. D) happens only when the price is zero.
When a business is considered by law to be a legal entity, it is known as a
A) partnership. B) conglomerate. C) corporation. D) proprietorship.