The Table Below Shows Annual Profits Received by Two Oligopolists

question 3

Multiple Choice

The table below shows annual profits received by two oligopolists, Alpha and Beta, depending on whether each company decides whether to live within the collusive agreement they have signed to charge a high price, or to cheat and charge a lower price.

$\begin{array}{}& \text {beta's Strategies }\\ \text {AlPHA'sStrategies }&\begin{array}{|l|c|c|}\hline & \begin{array}{c}\text { Don't } \\\text { }\end{array} & \text { Cheat } \\\hline \text { Don'tCheat} & \begin{array}{c}\text { B: } \$ 5 \mathrm{~m} \\\text { A: } \$ 5 \mathrm{~m}\end{array} & \begin{array}{c}\text { B: } \$ 6 \mathrm{~m} \\\text { A } \$ 3 \mathrm{~m}\end{array} \\\hline & \begin{array}{c}\text { B: } \$ 3 \mathrm{~m}\end{array} & \text { B: } \$ 4 \mathrm{~m} \\ \text { Cheat } & \$ 6 \mathrm{~m} & \text { A: } \$ 4 \mathrm{~m} \\\hline\end{array}\\\end{array}$
-Based on the table,if both Alpha and Beta charge the high price they agreed upon,then:

• A)they both receive a profit of $4 million
• B)they both receive a profit of $5 million
• C)Alpha receives a profit of $6 million and Beta receives a profit of $3 million
• D)Alpha receives a profit of $3 million and Beta receives a profit of $6 million
• E)Alpha receives a profit of $20 million and Beta receives a profit of $18 million

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Definitions:

Romanian Orphanages

Institutions in Romania, noted in studies for their impact on child development due to deprivation and neglect experienced by children.

Adopted

A person who has been legally taken by another family as their own child, granting them the same rights and privileges as a biological child.

Months

Units of time, typically used in calendars, that roughly correspond to the period of time it takes for the moon to orbit the Earth, commonly divided into 12 periods in a year.