Answer the next question based on the following payoff matrix for two oligopolistic firms in which the numbers indicate the profit in millions of dollars for each firm.
Firm A High PriceLow PriceFirm BHigh priceA = $250A = $325B = $250B = $100Low priceA = $100A = $175B = $325B = $175
If the two firms collude to maximize joint profits, the total profits for the two firms will be
Multiple Choice
$525 million.
Correct
$400 million.
$350 million.
$500 million.