Refer to Table 14-2. For each firm, is there a better outcome than the current situation in which each firm charges the low price and earns a profit of $7,000?

A) Yes, the firms can implicitly collude and agree to charge a higher price.
B) Yes, each firm can implicitly agree to increase output and not to deviate from a low price.
C) No, there is no incentive for each firm to consider any other strategy.
D) No, any other strategy hurts consumers.


A

Economics

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