The Accompanying Table Shows Two Firms in a Duopoly

question 144

Multiple Choice

The accompanying table shows two firms in a duopoly.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If both firms were able to collude and make their supply decisions collectively,Flixbuster would sell ________ subscriptions per month and Nextflix would sell ________ subscriptions per month.

• A) 200; 200
• B) 400; 400
• C) 400; 200
• D) 200; 400
• E) 600; 600

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Definitions:

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.

Suspicious

Having or showing a cautious distrust of someone or something, often involving a sense of fear or doubt.

Five-Factor Model

A model describing human personality traits in five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.