The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2

-Higher the economic freedom in a country, _____.

Question

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2
 
-Higher the economic freedom in a country, _____.

Quizplus · Accepted Answer

Economic freedom refers to the level of freedom a country's economy has in terms of government intervention, regulation, and control. A higher level of economic freedom is associated with a higher standard of living, increased economic growth, and higher life expectancy of the people. This is because economic freedom allows individuals and firms to make their own economic decisions, invest in their future, and accumulate wealth, leading to an overall improvement in the quality of life. Hence, option B is the best choice. The other options are incorrect, as economic freedom does not necessarily imply bureaucratic freedom and red-tapism or a lack of government schools and low literacy rates.

The Table Below Shows the Payoff (Profit) Matrix of Firm