The Table Below Shows the Payoff (Profit) Matrix of Firm

question 96

Multiple Choice

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-In order to survive, cartels must be able to enforce contracts. However, when a cartel is trading in an illegal commodity:

• A)it can use the judicial system to enforce contracts.
• B)it relies on altruism of members to enforce contracts.
• C)it is inherently stable because the market is underground.
• D)violence becomes a means of contract enforcement.
• E)authorities are effective in preventing the trade.

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Definitions:

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from their original source to a less threatening recipient.

Repression

A defense mechanism where distressing thoughts and memories are unconsciously kept out of conscious awareness.

Projection

A defense mechanism where individuals attribute their own undesirable thoughts, feelings, or motives onto someone else.

Defence Mechanism

Psychological strategies brought into play by individuals to protect themselves from unacceptable thoughts or feelings.