Use the following to answer question:
Figure: Payoff Matrix for the United States and the European Union
-(Figure: Payoff Matrix for the United States and the European Union)Use Figure: Payoff Matrix for the United States and the European Union.Suppose that the United States 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 the United States 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 question:
Figure: Payoff Matrix for the United States and the European Union 
-(Figure: Payoff Matrix for the United States and the European Union)Use Figure: Payoff Matrix for the United States and the European Union.Suppose that the United States 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 the United States 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 involves both the United States and the European Union producing a low output. This strategy would limit the supply of corn, potentially leading to higher prices and thus higher profits for both.

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