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Figure: Payoff Matrix for Ajinomoto and ADM
-(Figure: Payoff Matrix for Ajinomoto and ADM)Use Figure: Payoff Matrix for Ajinomoto and ADM.The optimal combination for maximum combined profit occurs when ADM produces _____ million pounds and Ajinomoto produces _____ million pounds.
A)30;30
B)40;40
C)30;40
D)40;30

Question

Use the following to answer question:
Figure: Payoff Matrix for Ajinomoto and ADM 
-(Figure: Payoff Matrix for Ajinomoto and ADM)Use Figure: Payoff Matrix for Ajinomoto and ADM.The optimal combination for maximum combined profit occurs when ADM produces _____ million pounds and Ajinomoto produces _____ million pounds.
A)30;30 
B)40;40 
C)30;40 
D)40;30

Quizplus · Accepted Answer

The optimal combination for maximum combined profit is identified by finding the combination of production levels that results in the highest total profit for both companies combined. Without the specific figures from the payoff matrix, the general approach involves adding the profits of Ajinomoto and ADM for each combination and identifying the highest sum. Since the exact matrix is not provided, this answer assumes familiarity with typical game theory outcomes where mutual cooperation (or mirrored strategies in symmetric games) often leads to optimal combined outcomes, hence the selection of an equal production level by both firms.

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