If Antel and imd both produce similar computer chips, and the two companies dominate this market. The profit for Antel in millions is $100 million and the profit for IMDin millions is $100 million. The best collective option for both firms is A. Cooperate.
Profit can be defined as the money a person earn from the sales of goods and service after deducting all expenses such as cost of production.
a. Profit for Antel
Based on the production analysis image given the that Antal makes is $100 million which implies that profit for Antel is $100 million.
b. Profit for IMD
Based on the production analysis image given the that IMD makes is $100 million which implies that profit for IMD is $100 million.
c. Best collective option for both firms
Since both Antel and IMD produced similar product and as well both dominate the market, the best collective option for the two firms is cooperate as this will enables them to work together which will inturn help their companies to make more profit.
d. The reasons why both Antel and IMD would make more profit at the original constant production level is:
B. They can both charge more for the product at given level of production
C. It restricts the supply of computer chips
Therefore profit for Antel is $100 million and the profit for IMD is $100 million.
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The complete questions is:
Antel and IMD both produce similar computer chips and the two companies dominate this market The table below shows the choices available to Antel and IMD in terms of total output and the profits they would make in each of these situations
a. Using what you know about the prisoner's dilemma, what would be the profit for Antel in millions?
b. Using what you know about the prisoner's dilemma, what would be the profit for IMD in millions?
c. What would be the best collective option for both firms?
The firms should
A. Cooperate
B. Act independently
d. Select all of the reasons that Antel and IMD would make more profit at the original constant production level?
The original production level is more profitable because
A. Overall demand for computer chips will increase
B. They can both charge more for the product at given level of production
C. It restricts the supply of computer chips
