Use the following to answer questions :
Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.The combined profits of the two are maximized if Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5 000;5 000
B) 7 000;7 000
C) 7 000;5 000
D) 5 000;7 000

Question

Use the following to answer questions :
Figure: Payoff Matrix for Gehrig and Gabriel 
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.The combined profits of the two are maximized if Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5 000;5 000 
B) 7 000;7 000 
C) 7 000;5 000 
D) 5 000;7 000

Quizplus · Accepted Answer

The combined profits are maximized when both Gehrig and Gabriel produce 5,000 figurines each, as this likely avoids oversupply and maintains higher prices and profits.

Use the Following to Answer Questions