Question

If this game is played only once, then the most likely outcome is that a. both firms produce a good quality product. b. both firms produce a poor quality product. c. Acme produces a good quality product and Pinnacle produces a poor quality product. d. Acme produces a poor quality product and Pinnacle produces a good quality product.

Answer 1

Answer:

a. both firms produce a good quality product.

Explanation:

There are two companies Acme and Pinnacle that can either make good or poor products, which generate a table of four possible outcomes, that is, either they both make good products or not or either company makes good or poor products.

Assuming this was a game that was played once, the table drawn shows that the first outcome is that both companies make good products with a profit margin of $6 million.