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The prisoner's dilemma shown displays the payoffs associated with two firms: Firm A and Firm B. These rms are in an oligopoly and they 1
The prisoner's dilemma shown displays the payoffs associated with two firms: Firm A and Firm B. These rms are in an oligopoly and they 1 9 can choose to either collude or compete. FIRM A Collude Compete 5 Produce 20m Produce 35m points A: $200m prots A: $300m prots Collude Produce 30m 8: $300m profits B: $170n1 prots FIRM B A: $50m prots A: $100m prots Compete Pmduce 50m 8: $400m prots 8: $200m prots Given the payoffs in this matrix, Firm B: Multiple Choice 0 should always choose to compete, regardless of Firm A's actions. Given the payoffs in this matrix, Firm B: Multiple Choice 0 should always choose to compete, regardless of Firm A's actions. O should compete if Firm A colludes and collude if Firm A competes. O should always choose to collude, regardless of Firm A's actions. 0 should compete if Firm A competes and collude if Firm A colludes
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