Table 15.2.10 -Refer to Table 15.2.10. Firm a and Firm B Are

question 88

Multiple Choice

Table 15.2.10

-Refer to Table 15.2.10. Firm A and Firm B are the only producers of soap powder. They collude and agree to share the market equally. The equilibrium ________ a dominant strategy equilibrium because the strategy in this game is for a firm ________.

• A)is; to comply regardless of the other firm's choice
• B)is not; to comply when the other firm cheats and to cheat when the other firm complies
• C)is; to cheat regardless of the other firm's choice
• D)is not; to comply when the other firm complies and to cheat when the other firm cheats
• E)is; to comply when the other firm cheats and to cheat when the other firm complies

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