Use the following to answer questions: Table: Oil Output $$\begin{array} { | l | l | c | c | }
\hline & & \begin{array} { c }
\text { Iran National Oil } \
\text { (profit in millions) }
\end{array} & { } \
\hline & & \text { Restrict Oil Output } & \text { Expand Oil Output } \
\hline \text { Iraq National Oil } & \text { Restrict Oil Output } & \$ 78 , \$ 78 & \$ 60 , \$ 89 \
\hline \text { (profit in millions) } & \text { Expand Oil Output } & \$ 89 , \$ 60 & \$ 65 , \$ 65 \
\hline
\end{array}$$
-(Table: Oil Output) Refer to the table. The equilibrium outcome is:
A) $78, $78.
B) $65, $65.
C) $89, $60.
D) $60, $89.

Question

Use the following to answer questions: Table: Oil Output $$\begin{array} { | l | l | c | c | } 
\hline & & \begin{array} { c } 
\text { Iran National Oil } \
\text { (profit in millions) }
\end{array} &  { } \
\hline & & \text { Restrict Oil Output } & \text { Expand Oil Output } \
\hline \text { Iraq National Oil } & \text { Restrict Oil Output } & \$ 78 , \$ 78 & \$ 60 , \$ 89 \
\hline \text { (profit in millions) } & \text { Expand Oil Output } & \$ 89 , \$ 60 & \$ 65 , \$ 65 \
\hline
\end{array}$$
-(Table: Oil Output) Refer to the table. The equilibrium outcome is:
A) $78, $78.
B) $65, $65.
C) $89, $60.
D) $60, $89.

Quizplus · Accepted Answer

The equilibrium outcome is when both Iraq and Iran choose to expand oil output, resulting in profits of $65 million each. This is a Nash equilibrium where neither party can benefit by unilaterally changing their strategy.

Use the Following to Answer Questions: Table: Oil Output -(Table: Oil Output) Refer to the Table