The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract.Each of the owners know the exact amount of oil in the pool and the market price of oil.

-Refer to Table .Under expectation damages, Frasel's breach of the contract would lower his net payoff to:
A)$6.
B)$8.
C)$16.
D)$10.

Question

The matrix given below represents the payoffs to oil well owners Mike and Frasel if they enter into a unitization contract.Each of the owners know the exact amount of oil in the pool and the market price of oil.

-Refer to Table .Under expectation damages, Frasel's breach of the contract would lower his net payoff to:

-Refer to Table .Under expectation damages, Frasel's breach of the contract would lower his net payoff to:
A)$6. 
B)$8. 
C)$16. 
D)$10.

Quizplus · Accepted Answer

Under expectation damages, the breaching party (Frasel) must compensate the other party to put them in the position they would have been in if the contract had been fulfilled. Without specific numbers from the table, we can't calculate the exact figures, but the correct answer is based on the information provided in the question.

The Matrix Given Below Represents the Payoffs to Oil Well