The following matrix represents the payoffs to two producers, each making a strategic choice either to keep the output at 5 units or at 10 units.

-Refer to Table .Which of the following payoffs would be received by the two players if both decide to break the agreement?
A)Each player would enjoy profits worth $50.
B)Each player would incur a loss worth $10.
C)Each player would enjoy profits worth $20.
D)Each player would enjoy profits worth $100.

Question

The following matrix represents the payoffs to two producers, each making a strategic choice either to keep the output at 5 units or at 10 units.

-Refer to Table .Which of the following payoffs would be received by the two players if both decide to break the agreement?
A)Each player would enjoy profits worth $50. 
B)Each player would incur a loss worth $10. 
C)Each player would enjoy profits worth $20. 
D)Each player would enjoy profits worth $100.

Quizplus · Accepted Answer

If both players decide to break the agreement, they would each receive profits worth $20, as per the information provided in the table.

The Following Matrix Represents the Payoffs to Two Producers, Each