The Following Table Shows Two Firms in a Duopoly

question 76

Multiple Choice

The following 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

---

Definitions:

Variance

A gauge for the extent of dispersion in a collection of data, derived by the average of squared differences relative to the mean.

Sample Mean

The average of all the data points in a sample set from a population.

Squared Deviations

The squares of the differences between each value in a set and the mean of the set, used in various statistical computations including variance.

Standard Deviation

An indicator that evaluates the degree of scatter or inconsistency in a dataset in relation to its mean.