FIRM A Collude Compete Produce 35m Produce 20m A: $200m profits A: $300 profits Collude Produce 30m| B: $300m profits B: $170m profits FIRM B A: $50 m profits A: $100 profits Compete Produce 50m| B: $400m profits B: $200m profits Given the payoffs in the matrix shown, Firm A: should always choose to collude, regardless of Firm B's actions. should always choose to compete, regardless of Firm B's actions. should compete if Firm A competes and collude if Firm B colludes. should compete if Firm A colludes and collude if Firm B competes.

FIRM A Collude Compete Produce 35m Produce 20m A: $200m profits A: $300 profits Collude Produce 30m| B: $300m profits B: $170m profits FIRM B A: $50 m profits A: $100 profits Compete Produce 50m| B: $400m profits B: $200m profits Given the payoffs in the matrix shown, Firm A: should always choose to collude, regardless of Firm B's actions. should always choose to compete, regardless of Firm B's actions. should compete if Firm A competes and collude if Firm B colludes. should compete if Firm A colludes and collude if Firm B competes.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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