Table 112 Suppose OPEC Has Only Two Producers, Saudi Arabia

question 2

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.Which of the following statements is true?

• A)The Nash equilibrium is a non-cooperative, dominant strategy equilibrium.
• B)The Nash equilibrium is a cooperative equilibrium.
• C)The Nash equilibrium is a collusive equilibrium.
• D)There is no Nash equilibrium in this game because each party pursues its dominant strategy.

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Cell

The basic structural, functional, and biological unit of all known living organisms, a building block of life.

Disease

A condition that negatively affects the structure or function of part or all of an organism, and is not due to any external injury.

Karyogenesis

The process of nucleus formation in cells, especially during cell division.

Distal

Situated farthest from the point of attachment or origin, as of a limb or bone.