Briefly Explain Why Often Two Firms Could Both Be Made

question 259

Essay

Briefly explain why often two firms could both be made better off by cooperating, but they fail to cooperate.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Variance

A statistical measure that represents the degree of spread or dispersion of a set of values from their mean.

Probability

The quantification of the probability that an event will happen, represented as a number ranging from 0 to 1.