The Table Below Shows the Payoff (Profit) Matrix of Firm

question 96

Multiple Choice

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-In order to survive, cartels must be able to enforce contracts. However, when a cartel is trading in an illegal commodity:

• A)it can use the judicial system to enforce contracts.
• B)it relies on altruism of members to enforce contracts.
• C)it is inherently stable because the market is underground.
• D)violence becomes a means of contract enforcement.
• E)authorities are effective in preventing the trade.

---

Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development that gives rise to the lining of the digestive and respiratory systems.

Circulatory System

The circulatory system is an organ system that permits blood and lymph circulation to transport nutrients, oxygen, carbon dioxide, hormones, and blood cells to and from cells in the body.

Mesoderm

The intermediate layer in an embryo during its initial stages of development, responsible for forming the muscular, skeletal, and circulatory systems.

Somites

Blocks of mesoderm that are located on either side of the spine in the developing embryo, which will differentiate into the vertebrae, ribs, muscles, and dermis.