Table 14-3 Suppose OPEC Has Only Two Producers, Saudi Arabia and Nigeria.Saudi

question 127

Multiple Choice

Table 14-3

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 14-3 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 14-3.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.

---

Definitions:

Manage Anger

Techniques or strategies employed to recognize signs of anger and handle them in a positive and constructive manner without causing harm.

Recommended

Suggested or advised as being particularly suitable or beneficial.

Find a Distraction

The act of diverting one's attention away from distressing thoughts or feelings to focus on something else, often for relief or relaxation.

Vent

To release or express emotions, thoughts, or feelings, often as a way of relieving stress or tension.