The Accompanying Table Shows Two Firms in a Single-Stage Duopoly

question 20

Multiple Choice

The accompanying table shows two firms in a single-stage duopoly game.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.Assume firms are not able to collude.The Nash equilibrium total quantity of potatoes on the market is:

• A) 12,000
• B) 4,000
• C) 10,000
• D) 14,000
• E) 24,000

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Definitions:

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers or departments.

Goal Congruence

The alignment of individual objectives and actions with the overall goals and objectives of an organization.

Performance Measures

Quantitative and qualitative metrics used to assess the effectiveness or efficiency of operations, employees, or overall organizational performance.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company as part of the internal sales process.