==+quantity or the cartel quantity. To aid in making the decision, the manager of WW constructs a

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==+quantity or the cartel quantity. To aid in making the decision, the manager of WW constructs a payoff matrix like the one below. Fill in each box with the profit of WW and the profit of BBBS. Given this payoff matrix, what output strategy is each firm likely to pursue?

ProFit PayoFF matrix BBBs

(WW ProFit, BBBs ProFit)

ProDUCe CoUrnot q ProDUCe CarteL q WW produce cournot q produce cartel q

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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