Use the Following to Answer Question

question 139

Multiple Choice

Use the following to answer question:
Figure: Payoff Matrix II for Blue Spring and Purple Rain
-(Figure: Payoff Matrix II for Blue Spring and Purple Rain) Use Figure: Payoff Matrix II for Blue Spring and Purple Rain.The figure describes two producers of bottled water.If both firms follow a tit-for-tat strategy,then:

• A)both firms will charge a high price.
• B)both firms will charge a low price.
• C)Blue Spring will charge a high price,and Purple Rain will charge a low price.
• D)Purple Rain will charge a high price,and Blue Spring will charge a low price.

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Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can produce given its available resources and technology.

Comparative Advantage

The proficiency of either a person, a company, or a country in crafting a good or providing a service, which comes at a lesser opportunity cost than that offered by rival parties.

Domestic Demand

The total demand for goods and services within a country's borders.