The Following Matrix Represents the Payoffs to Two Producers, Each

Multiple Choice

The following matrix represents the payoffs to two producers, each making a strategic choice either to keep the output at 5 units or at 10 units.


-Refer to Table .Assume that the law allows players (firms of equal sizes) in Table 7-1 to make enforceable agreements.Which of the following agreements are they likely to form?

A) Player A and Player B would produce 5 units each.
B) Player A and Player B would produce 10 units each.
C) Player A would produce 10 units and Player B would produce 5 units.
D) Player B would produce 10 units and Player A would produce 5 units.