Table 15.2.10 -Refer to Table 15.2.10. Firm a and Firm B Are

Multiple Choice

Table 15.2.10

-Refer to Table 15.2.10. Firm A and Firm B are the only producers of soap powder. They collude and agree to share the market equally. The payoff matrix shows the game they play. The equilibrium of the game is that Firm A ________ and Firm B ________.

A) complies; cheats
B) cheats; complies
C) complies; complies
D) cheats; cheats
E) makes an economic profit; incurs an economic loss