Multiple Choice
(Figure: Payoff Matrix for Alex and Sybil) Use Figure: Payoff Matrix for Alex and Sybil. Alex and Sybil are the only producers of frozen yogurt in their town. Every week, each decides how much frozen yogurt to produce for the following week. The figure shows the profit per week earned by their two firms. Suppose the firms each decide to produce a low quantity initially and adopt a Grim trigger strategy for the following weeks. After a few weeks, Alex's weekly profit would be _____, and Sybil's weekly profit would be _____.
A) $800; $800
B) $1,000; $1,000
C) $1,500; $200
D) $200; $1,500
Correct Answer:

Verified
Correct Answer:
Verified
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