Australian

-There are two can companies, Australian and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above. If both firms cheat on the collusive agreement, what amount of economic profit is made by Australian?
A) - $2,000
B) $3,000
C) $4,000
D) $0

Question

Australian
 
-There are two can companies, Australian and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above. If both firms cheat on the collusive agreement, what amount of economic profit is made by Australian?
A) - $2,000 
B) $3,000 
C) $4,000 
D) $0

Quizplus · Accepted Answer

If both firms cheat on the collusive agreement, the payoff to Australian is $0.

Australian -There Are Two Can Companies, Australian and National, Which Have