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Explain the general meaning of the following profit payoff matrix for oligopolists C and D. All profit figures are in thousands.
a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries.
b. Assuming no collusion between C and D, what is the likely pricing outcome?
c. In view of your answer to 6b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement?
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any change in the economys total expenditures would be expected to translate into a change in gdp that was larger than
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The CFO of a German corporation with surplus
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"In an economy in which resources can move among industries with relative ease, a cartel attempting to maximize short-term profits will sow the seeds of its own destruction." Explain.
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