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 8b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusiveagreement?

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C's Possible prices $40 $35 A$57 B$59 $60 $55 08 C $50 D$55 $69 $58