Table: Firms A, B Refer to the Table

question 132

Essay

Table: Firms A, B $$\begin{array} { | c | l | c | c } \hline & & \begin{array} { c } \text { Firm B (profits } \\\text { millions) }\end{array} & \\\hline & & \text { Restrict Output } & \text { Expand Output } \\\hline \text { Firm A (profits } & \text { Restrict output } & \$ 15 , \$ 15 & \$ 6 , \$ 25 \\\hline \text { millions) } & \text { Expand output } & \$ 25 , \$ 6 & \$ 12 , \$ 12 \\\hline\end{array}$$
Refer to the table. What is the equilibrium outcome if Firms A and B form a cartel and do not cheat? What is the equilibrium outcome if at least one firm decides to cheat?

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Definitions:

Popliteal Vein

A vein located behind the knee that drains blood from the lower leg to the thigh.

Femoral Vein

A major vein in the thigh that returns deoxygenated blood to the heart from the lower limbs.

Transverse Scapular Vein

A vein that drains blood from the region around the scapula, crossing horizontally.

Cephalic Vein

A large vein on the outer side of the upper arm, draining blood from the hand and forearm into the shoulder's subclavian vein.