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Suppose There Is a 20 Percent Chance That the Advertising

Question 39

Multiple Choice

Suppose there is a 20 percent chance that the advertising game depicted in the above payoff matrix will end next period.The collusive agreement {(Not Advertise, Not Advertise) } is


A) sustainable since $175 < $625.
B) unsustainable since $175 < $625.
C) sustainable since $10 > $50.
D) unsustainable since $10 > $50.

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