Table 14-3 Suppose OPEC Has Only Two Producers, Saudi

question 66

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. What is the Nash equilibrium in this game?

• A) In the Nash equilibrium, both Saudi Arabia and Nigeria produce a low output and earn a profit of $100 million and $20 million respectively.
• B) In the Nash equilibrium, both Saudi Arabia and Nigeria produce a high output and earn a profit of $60 million and $20 million respectively.
• C) In the Nash equilibrium, Saudi Arabia produces a low output and earns a profit of $80 million and Nigeria produces a high output and $30 million respectively.
• D) There is no Nash equilibrium.

Recognize key documents, speeches, and ideologies that influenced the period leading up to the Civil War.

Identify the role of influential figures and their positions on slavery and secession.

Analyze the impact of legislative acts and propositions on the slavery debate and state rights.

Understand the outcomes and significance of the Lincoln-Douglas debates and their impact on national politics.

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of a financial instrument, typically the principal plus any final interest payments.

60-Day Note

A type of short-term debt where the repayment is due 60 days after issuance.

360-Day Year

An accounting simplification that assumes there are 360 days in a year to facilitate easier interest calculations.

Direct Write-Off Method

An accounting practice where bad debts are written off against income at the time they are determined to be uncollectible, instead of being provided for in advance.