The table shows the payoff matrix for two firms operating a zipline duopoly in a resort town. If the firms decide to compete, industry profits equal and both firms would offer rides each. Firm X's strategies 100 rides 60 rides O A. $9,0003; 60 O B. $5,000; 60 $3,000 $1,000 OC. $9,000; 100 100 rides O D. $10,000; 320 $3,000 $6,000 O E. $6,000; 100 Firm Y's strategies $6,000 $5,000 60 rides $1,000 $5,000
The table shows the payoff matrix for two firms operating a zipline duopoly in a resort town. If the firms decide to compete, industry profits equal and both firms would offer rides each. Firm X's strategies 100 rides 60 rides O A. $9,0003; 60 O B. $5,000; 60 $3,000 $1,000 OC. $9,000; 100 100 rides O D. $10,000; 320 $3,000 $6,000 O E. $6,000; 100 Firm Y's strategies $6,000 $5,000 60 rides $1,000 $5,000
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Oligopoly
Section: Chapter Questions
Problem 2CQQ
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Question
![The table shows the payoff matrix for two firms operating a zipline duopoly in a resort
town. If the firms decide to compete, industry profits equal and both firms would offer
Firm X's strategies
rides each.
100 rides
60 rides
O A. $9,000; 60
O B. $5,000; 60
$3,000
$1,000
OC. $9,000; 100
100 rides
O D. $10,000; 320
$3,000
$6,000
O E. $6,000; 100
Firm Y's strategies
$6,000
$5,000
60 rides
$1,000
$5,000
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5498129d-fa90-4054-9767-1cffe54599e5%2F16534327-758e-4d20-ac08-6a25474fd635%2Fjpv5pjp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table shows the payoff matrix for two firms operating a zipline duopoly in a resort
town. If the firms decide to compete, industry profits equal and both firms would offer
Firm X's strategies
rides each.
100 rides
60 rides
O A. $9,000; 60
O B. $5,000; 60
$3,000
$1,000
OC. $9,000; 100
100 rides
O D. $10,000; 320
$3,000
$6,000
O E. $6,000; 100
Firm Y's strategies
$6,000
$5,000
60 rides
$1,000
$5,000
Next
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