Use the Following to Answer Questions 26-28

question 47

Multiple Choice

Use the following to answer questions 26-28:
Table 12.16
-(Table 12.16) The payoffs represent profits measured in thousands of dollars. In this infinitely repeated game, Firm A and Firm B are both using grim trigger strategies; they agree to charge a high price in period 1. If Firm A charges a high price for all periods, what is its expected payoff? Assume that d = 0.9.

• A) $720,000
• B) $3 million
• C) $364,000
• D) $200,000

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Definitions:

Ideological Crusade

A vigorous, passionate, and often lengthy campaign for a specific belief system or ideology, typically involving considerable zeal and effort to persuade or impose such beliefs on others.

Universal Declaration

Refers to the Universal Declaration of Human Rights adopted by the United Nations General Assembly in 1948, outlining fundamental human rights to be universally protected.

Human Rights

Fundamental rights and freedoms that all individuals are entitled to, regardless of nationality, sex, ethnicity, religion, or any other status.

Southern Democrats

Members of the Democratic Party in the United States who reside in the South, historically associated with supporting segregation and opposing civil rights reforms.