Table 112 Suppose OPEC Has Only Two Producers, Saudi Arabia

question 132

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 Saudi Arabia and, if so, what is it?

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

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Definitions:

Motor Behavior

The study of how motor skills are learned, controlled, and developed to assist people as they practice and experience physical activities.

Relative Strength

A measure of an object or individual's force or capability in comparison to others.

Crossmodal Perception

The ability to integrate information from different sensory modalities, such as seeing and hearing, to form a coherent perception of the environment.

Sensory System

The part of the nervous system responsible for processing sensory information, enabling perception of the environment through senses like sight, hearing, smell, taste, and touch.