The Accompanying Table Shows Two Firms in a Duopoly A) 200; 200
B) 400; 400
C) 400; 200
D)

question 20

Multiple Choice

The accompanying table shows two firms in a duopoly. Each firm makes its decision without knowledge of the other firm's decision. The payoffs for each firm represent economic profits, and each firm strictly prefers more economic profit than less. If both firms were able to collude and make their supply decisions collectively, Flixbuster would sell ___________ subscriptions per month and Nextflix would sell ___________ subscriptions per month. $\begin{array} { l }&\text { Flixbuster }\\\text {netflix }&\begin{array} { l }\quad\quad\text { Sell } 200 \text { subscriptions per}\quad\quad\text { Sell } 200 \text { subscriptions per }\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { month }\quad\quad\quad\quad\text { month }\\\begin{array} { l } \text { Sell 200} \\ \text { subscriptions} \\ \text {per month } \\\\ \text { Sell 400} \\ \text { subscriptions} \\ \text {per month } \\\end{array}\begin{array}{|l|l|}\hline \$750,000\quad\quad\quad&\$950,000\quad\quad\quad \\\\\$750,000&\$400,000\\\hline \$400,000&\$600,000\\\\\$950,000&\$600,000 \\\\\hline\end{array}\end{array}\end{array}$

• A) 200; 200
• B) 400; 400
• C) 400; 200
• D) 200; 400
• E) 600; 600

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Definitions:

Retrieved

Refers to information that has been recovered or accessed, usually from memory or a storage system.

Land

The part of the earth's surface that is not covered by water, often considered in terms of its ownership or use.

Priming

A psychological phenomenon whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance.

Activation

The process in which something is prepared or initiated for use or action, often referring to physiological or neural functions.