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.

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Unions that organize workers across all crafts and trades within a single industry.

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A period in American history during the 1930s in which President Franklin D. Roosevelt implemented a series of economic interventions designed to recover from the Great Depression, including job creation programs, financial regulations, and social welfare initiatives.

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