Table 14-8 Two Rival Oligopolists in the Athletic Supplements Industry, the Power

question 240

Multiple Choice

Table 14-8

Two rival oligopolists in the athletic supplements industry, the Power Fuel Company and the Brawny Juice Company, have to decide on their pricing strategy.Each can choose either a high price or a low price.Table 14-8 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 14-8.If the two firms collude, is there an incentive for either to cheat on the collusion agreement?

• A)No, neither firm can gain by cheating.
• B)Yes, but only Brawny Juice is in a position to gain by cheating.
• C)Yes, but only Power Fuel is in a position to gain by cheating.
• D)Yes, either firm can gain if it, alone, cheats.

---

Definitions:

Locked Doors

A metaphorical or literal term referring to barriers to access, security, or privacy.

John Muir

An influential Scottish-American naturalist, author, environmental philosopher, and early advocate for the preservation of wilderness in the United States.

Sierra Club

An environmental organization founded in 1892 in the United States, focused on the conservation of natural areas and addressing climate change.

Spirituality of Nature

A belief or feeling of deep connection and reverence for the natural world, often reflecting religious, philosophical, or personal perspectives on the environment and life.