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Question
The following table shows two firms in a duopoly. Each firm makes its decision without knowledge of the other firms decision. The payoffs for each firm represent economic profits, and each firm strictly prefers more economic profit than less. If both firms were able to collude and make their supply decisions collectively, Flixbuster would sell ________ subscriptions per month and Nextflix would sell ________ subscriptions per month.
a. 200; 200
b. 400; 400
c. 400; 200
d. 200; 400
e. 600; 600
Answer
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