Figure 17-3. Hector and Bart are roommates. On a particular day, their apartment needs to be cleaned. Each person has to decide whether to take part in cleaning. At the end of the day, either the apartment will be completely clean (if one or both roommates take part in cleaning), or it will remain dirty (if neither roommate cleans). With happiness measured on a scale of 1 (very unhappy) to 10 (very happy), the possible outcomes are as follows:
-Refer to Figure 17-3. The possible outcome in which both Hector and Bart clean is analogous to which of the following outcomes of the duopoly game?
A)The duopolists collude to achieve the monopoly outcome.
B)The duopolists collude to achieve the monopolistically-competitive outcome.
C)The outcome is the one that is most preferable for consumers of the duopolists' product.
D)The outcome is the one that is least preferable for both the duopolists and for the consumers of their product.

Question

Figure 17-3. Hector and Bart are roommates. On a particular day, their apartment needs to be cleaned. Each person has to decide whether to take part in cleaning. At the end of the day, either the apartment will be completely clean (if one or both roommates take part in cleaning), or it will remain dirty (if neither roommate cleans). With happiness measured on a scale of 1 (very unhappy) to 10 (very happy), the possible outcomes are as follows: 
-Refer to Figure 17-3. The possible outcome in which both Hector and Bart clean is analogous to which of the following outcomes of the duopoly game?
A)The duopolists collude to achieve the monopoly outcome. 
B)The duopolists collude to achieve the monopolistically-competitive outcome. 
C)The outcome is the one that is most preferable for consumers of the duopolists' product. 
D)The outcome is the one that is least preferable for both the duopolists and for the consumers of their product.

Quizplus · Accepted Answer

The possible outcome in which both Hector and Bart clean is similar to the collusive outcome in the duopoly game, where the firms agree to cooperate and act like a monopoly to maximize their joint profits. Similarly, both roommates cleaning results in the best outcome of a completely clean apartment, maximizing their joint happiness.