oligopolies: FIRM BColludeProduce 20mA: $200m profitsColludeProduce 30m B: $300m profitsFIRM AA: $50m profitsCompeteProduce 50m B: $400m profitsCompeteProduce 35mA: $300m profitsB: $170m profitsA: $100m profitsB: $200m profitsGiven the payoffs shown, what can we predict Firm B's profits will be?

The dominant strategy is the best course of action no matter what type of strategies are followed by…

Answered: IRM B Produce 30m B: $300m profits A:…

IRM B Produce 30m B: $300m profits A: $50m profits Compete Produce 50m B: $400m profits B: $170m profits A: $100m profits B: $200m profits

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

oligopolies:

FIRM B
Collude
Produce 20m
A: $200m profits
Collude
Produce 30m B: $300m profits
FIRM A
A: $50m profits
Compete
Produce 50m B: $400m profits
Compete
Produce 35m
A: $300m profits
B: $170m profits
A: $100m profits
B: $200m profits
Given the payoffs shown, what can we predict Firm B's profits will be?

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