Table 112 Suppose OPEC Has Only Two Producers, Saudi Arabia

question 23

Multiple Choice

Table 11.2 Suppose OPEC has only two producers, Saudi Arabia and Nigeria.Saudi Arabia has far more oil reserves and is the lower cost producer compared to Nigeria.The payoff matrix in Table 11.2 shows the profits earned per day by each country.'Low output' corresponds to producing the OPEC assigned quota and 'high output' corresponds to producing the maximum capacity beyond the assigned quota.
-Refer to Table 11.2.Is there a dominant strategy for Nigeria and, if so, what is it?

• A)Yes, it has a dominant strategy depending on what Saudi Arabia does.
• B)No, there is no dominant strategy.
• C)Yes, the dominant strategy is to produce a low output.
• D)Yes, the dominant strategy is to produce a high output.

Understand the relationship between organizational structure and the external environment.

Recognize the impact of centralization and decentralization on organizational effectiveness.

Understand the reasons for and implications of moving towards flatter organizational structures.

Grasp the concept of departmentalization and its effects on coordination and conflict within organizations.

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Definitions:

Governmental Services

Services provided by the government to its citizens; these can include education, healthcare, and public safety.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.