You are one of two member nations of OOEC: the
E Organization of Otter Exporting Countries, a cartel designed
to artificially restrict otter output in an attempt to generate © monopoly profits. Demand conditions are such that various combinations of output yield the profits in the payoff matrix.
Other Country
Produce 1.000
Otters
Produce 2.000
Otters
Produce 1,000
Otters
$500, $500
$250, $700
Your Country
Produce 2,000
Otters
$700, $250
$400, $400
a. If your country can successfully collude with the other country, each country will produce
each will earn
in profit.