Use the Following to Answer Question

question 154

Multiple Choice

Use the following to answer question:
-(Table: Demand for Crude Oil) Look at the table Demand for Crude Oil. For simplicity, assume that the marginal cost of producing crude oil is zero. There are only two producers of crude oil, and they cannot cooperate. But they play this game every week, each player has a tit-for-tat strategy, and the other player knows this. When both firms use a tit-for-tat strategy, firm 1 will produce _____ barrels, and firm 2 will produce _____ barrels.

• A) 40; 40
• B) 40; 50
• C) 50; 50
• D) 30; 30

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Definitions:

Adjusting Journal Entries

Entries made in the accounting records to correct errors or allocate income and expenses to the correct periods.

Journal Entry Icon

A graphical representation or shortcut in software, used to access the feature where financial transactions are manually recorded.

Trial Balance

A bookkeeping report that lists the balances of all ledgers and accounts to check that debits equal credits in the double-entry accounting system.

Adjustments

Adjustments in accounting refer to entries made in journal accounts at the end of an accounting period to correct and allocate incomes and expenditures accurately.