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Figure: Payoff Matrix for Canada and the European Union
-(Figure: Payoff Matrix for Canada and the European Union)Use Figure: Payoff Matrix for Canada and the European Union.Suppose that Canada and the European Union both produce corn,and each region can make more profit if output is limited and the price of corn is high.The joint profit-maximizing combination is for Canada to produce a _____ output and the European Union to produce a _____ output.
A) high;high
B) high;low
C) low;low
D) low;high

Question

Use the following to answer questions :
Figure: Payoff Matrix for Canada and the European Union 
-(Figure: Payoff Matrix for Canada and the European Union)Use Figure: Payoff Matrix for Canada and the European Union.Suppose that Canada and the European Union both produce corn,and each region can make more profit if output is limited and the price of corn is high.The joint profit-maximizing combination is for Canada to produce a _____ output and the European Union to produce a _____ output.
A) high;high 
B) high;low 
C) low;low 
D) low;high

Quizplus · Accepted Answer

The joint profit-maximizing combination is where both Canada and the European Union produce low output, resulting in high prices and higher profits for both regions. Therefore, the best choice is for Canada to produce a low output and for the European Union to also produce a low output. This corresponds to choice C.

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