Refer to the Normal-Form Game of Price Competition in the Payoff

question 98

Multiple Choice

Refer to the normal-form game of price competition in the payoff matrix below. $\begin{array}{c}\text { Firm B }\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { Low Price } & \text { High Price } \\\hline & & \\\text { Low Price } & 0,0 & 50,-10 \\\hline & & \\\text { High Price } & -10,50 & 20,20\\\hline\end{array}\end{array}$ What is the maximum interest rate that can sustain collusion?

• A) 30 percent
• B) 15 percent
• C) 66.7 percent
• D) 20 percent

---

Definitions:

Father

A father is a male parent or guardian of a child, contributing to the child's development and well-being through support, care, and guidance.

Socialized Medicine

In countries with socialized medicine, the government (1) directly controls the financing and organization of health services, (2) directly pays providers, (3) guarantees equal access to health care, and (4) allows some private care for individuals willing to pay for their medical treatment.

Canadian Health Care

A publically funded healthcare system providing services to citizens and residents of Canada, characterized by its universal coverage and accessibility.

Privatized System

A system in which services and industries are owned and operated by private individuals or companies, rather than by the government.