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Consider a residential internet service industry that is structured as an oligopoly of two firms: Firm A and Firm B. The two firms agreed to
Consider a residential internet service industry that is structured as an oligopoly of two firms: Firm A and Firm B. The two firms agreed to hold down output in an attempt to earn more profits. What most likely occurred if both firms earned $10 million greater profits? Firm B Cooperate, hold down output Betray, do not hold down output Firm A Cooperate, hold down output A gets $10 million , B gets $10 million A gets $3 million, B gets $15 million Betray, do not hold down output A gets $15 million, B gets $3 million A gets $5 million B gets $5 million Note: Predict the outcome, given the Prisoner's Dilemma
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