Oscar -Oscar and Felix Are the Only Firms That Clean Offices

question 103

Multiple Choice

Oscar

-Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix above gives the economic profit that each firm can make. If Felix cheats on the agreement but Oscar complies, Felix makes an economic profit of _______ and Oscar makes an economic profit of _______.

• A) $12 million; - $2 million
• B) $10 million; $10 million
• C) $1 million; $1 million
• D) - $2 million; $12 million

---

Definitions:

Reflexes

are automatic, involuntary responses to stimuli that occur without conscious thought, such as blinking or the knee-jerk reaction.

Voluntary Behavior

Actions that are performed consciously and with intention, often motivated by personal choice rather than automatic reflexes.

Temperament

Temperament refers to the innate aspects of an individual's personality, such as their tendency towards certain moods and behaviors, which are evident from an early age.

Genetic Basis

The underlying foundation in the genes that contributes to the development of specific traits or conditions.