Refer to the above payoff matrix.If both firms collude to maximize joint profits,the total profits for the two firms will be:
A) $350 million.
B) $400 million.
C) $500 million.
D) $525 million. Both firms collude and settle on a high-price strategy.This results in $250 million profits each,or $500 million total.

Question

Refer to the above payoff matrix.If both firms collude to maximize joint profits,the total profits for the two firms will be:
A) $350 million. 
B) $400 million. 
C) $500 million. 
D) $525 million. Both firms collude and settle on a high-price strategy.This results in $250 million profits each,or $500 million total.

Quizplus · Accepted Answer

The Answer of  Refer to the above payoff matrix.If both firms collude to maximize joint profits,the total profits for the two firms will be:
A) $350 million. 
B) $400 million. 
C) $500 million. 
D) $525 million. Both firms collude and settle on a high-price strategy.This results in $250 million profits each,or $500 million total.

Refer to the Above Payoff Matrix