Table 16-2
in the Following Duopoly Game, the Two Firms

question 158

Multiple Choice

Table 16-2
In the following duopoly game, the two firms can either set the price of their product high or low.The game is represented in the table below. $\begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { High Price }&\text { Low Price }\\\hline \text { Firm A }&\text { High Price }&\text { Firm A gets \$1000 } & \text { Firm A get \$1250 } \\&& \text { Firm B gets \$1000 } & \text { Firm B gets \$1100 } \\\hline &\text { Low Price }&\text { Firm A gets \$800 } & \text { Firm A gets \$900 } \\&&\text { Firm B gets \$800 } & \text { Firm B gets \$900 } \\\hline\end{array}$
-Refer to Table 16-2.If the two firms wanted to achieve the optimal level of profit they would:

• A)both sell at a low price
• B)both sell at a high price
• C)collude to let firm A sell at a low price and firm B to sell at a high price
• D)collude to let firm A sell at a high price and firm B to sell at a low price

---

Definitions:

Moral Entrepreneur

A person who influences or changes the creation or enforcement of a society’s moral codes.

Moral Gatekeeper

An individual or entity that controls or influences the ethical and moral standards and behaviors within a community or society.

Conflict Theorists

Scholars who focus on the societal struggles between different classes or groups, emphasizing the role of conflict, competition, and constraint within society.

Criminal Law

The body of law that relates to crime and the punishment of individuals who violate laws designed to protect public safety and welfare.