Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
F16

Transcribed Image Text:Firm X's strategies
180 rides
60 rides
$3,000
$1,000
100 rides
$3,000
$6,000
Firm Y's strategies
$6,000
$5,000
60 rides
$1,000
$5,000
O Time Remaining: 00:52:35

Transcribed Image Text:The table on the right shows the payoff matrix for two firms operating a zipline duopoly in a resort town. If the firms can
collude, industry profits equal
and both firms would offer
rides each.
OA. $6,000; 100
OB. $5,000; 100
OC. $10,000; 320
O D. $10,000; 60
O E. $5,000; 60
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