Question: The payoff matrix represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. Each seller must decide whether or
The payoff matrix represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. Each seller must decide whether or not to cheat on the production quotas in the cartel agreement. Use the payoff matrix to answer the questions.Heifer's GoldMilky MoosCheatDo not cheatABCheat$$$$CDDo not cheat$$$$a Does either member have an incentive to cheat?No neither has an incentive to cheat.Heifer's Gold will cheat, but Milky Moostvb How does cheating impact the other cartel member?Cheating helps the other cartel member by
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