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(Table) Boeing and Airbus Can Either Comply with a Cartel

Question 176

Multiple Choice

(Table) Boeing and Airbus can either comply with a cartel agreement or cheat. Based on the table, where Boeing's payoff is listed first in each outcome, if Boeing cheats on the cartel agreement and Airbus complies with the agreement, Boeing's profit will be
 Airbus  Cheat  Comply Boeing  Cheat $0,$0$3 million, $1 million  Comply $1 million, $3 milton $2 million, $2 million \begin{array}{c}\quad \quad \quad \quad \quad \quad \quad \quad \text { Airbus }\\\begin{array}{ccc}&& \text { Cheat } & \text { Comply } \\ \text {Boeing } &\text { Cheat } & \$ 0, \$ 0 & \$ 3 \text { million, }-\$ 1 \text { million } \\&\text { Comply } & -\$ 1 \text { million, } \$ 3 \text { milton } & \$ 2 \text { million, } \$ 2 \text { million }\end{array}\end{array}


A) $3 million.
B) $2 million.
C) -$1 million.
D) Boeing will make no profit.

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