The accompanying table shows two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If both firms were able to write a binding contract,this contract would specify that Bobbles.com agrees to produce ________ bobbleheads and Bobbles R Us agrees to produce ________ bobbleheads.

A) 5,000; 7,000
B) 7,000; 5,000
C) 7,000; 7,000
D) 5,000; 5,000
E) 12,000; 0

Question

The accompanying table shows two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If both firms were able to write a binding contract,this contract would specify that Bobbles.com agrees to produce ________ bobbleheads and Bobbles R Us agrees to produce ________ bobbleheads.

A) 5,000; 7,000 
B) 7,000; 5,000 
C) 7,000; 7,000 
D) 5,000; 5,000 
E) 12,000; 0

Quizplus · Accepted Answer

The Answer of The accompanying table shows two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If both firms were able to write a binding contract,this contract would specify that Bobbles.com agrees to produce ________ bobbleheads and Bobbles R Us agrees to produce ________ bobbleheads.

A) 5,000; 7,000 
B) 7,000; 5,000 
C) 7,000; 7,000 
D) 5,000; 5,000 
E) 12,000; 0

The Accompanying Table Shows Two Firms in a Single-Stage Duopoly