Use the following table for the question below. Dynaco Decision Synergy Decision Large Budget Small Budget Large Synergy.gains.20.million Synergy gains zero Budget Dynaco gains 30 million Dynaco gains 70 million Small Synergy.gains.30.million Budget Dynaco gains zero Synergy.gains.40.million Dynaco gains 50 million If the two firms were allowed to work together (collude) and create a binding agreement, what is the optimal (best) outcome for both of them? O Synergy gains $40 million and Dynaco gains $50 million O Synergy gains zero Dynaco gains million O Synergy gains $20 million and Dynaco gains $30 million O Synergy gains $30 million and Dynaco gains zero

Use the following table for the question below. Dynaco Decision Synergy Decision Large Budget Small Budget Large Synergy.gains.20.million Synergy gains zero Budget Dynaco gains 30 million Dynaco gains 70 million Small Synergy.gains.30.million Budget Dynaco gains zero Synergy.gains.40.million Dynaco gains 50 million If the two firms were allowed to work together (collude) and create a binding agreement, what is the optimal (best) outcome for both of them? O Synergy gains $40 million and Dynaco gains $50 million O Synergy gains zero Dynaco gains million O Synergy gains $20 million and Dynaco gains $30 million O Synergy gains $30 million and Dynaco gains zero

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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