The accompanying table shows two firms in a duopoly. Each firm makes its decision without knowledge of the other firm's decision. The payoffs for each firm represent economic profits, and each firm strictly prefers more economic profit than less. If both firms were able to collude and make their supply decisions collectively, Flixbuster would sell ___________ subscriptions per month and Nextflix would sell ___________ subscriptions per month.
A) 200; 200
B) 400; 400
C) 400; 200
D) 200; 400
E) 600; 600
Correct Answer:
Verified
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