-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 1

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,and the government imposes a $20 per firm tax on firms that service this route,which of the following maximizes the firms' joint profits?

• A) Neither firm services the route.
• B) Firm A offers firm B $20 to not enter.
• C) Both firms will service this route.
• D) Firm B offers firm A $30 to not enter.

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An individual of Korean descent born in or having become a citizen of the United States, contributing to the cultural and social fabric of America.

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