b) What is the Dominant strategy of ADM?  c) What is the Dominant strategy of Ajinomoto? e) If these 2 firms co-operate can they do better in terms of maximizing their profits?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
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b) What is the Dominant strategy of ADM? 
c) What is the Dominant strategy of Ajinomoto?

e) If these 2 firms co-operate can they do better in terms of
maximizing their profits?

ADM
Produce 30
million
pounds
Produce 40
million
pounds
Produce 30 million
pounds
Ajinomoto
Ajinomoto makes $180
million profit.
ADM makes $180
million profit
Ajinomoto makes $160
million
profit.
ADM makes $200
million profit
Produce 40 million
pounds
Ajinomoto makes $200
million profit.
ADM makes $150
million profit
Ajinomoto makes $150
million profit.
ADM makes
$160million profit
Back to
Table of
contents
Transcribed Image Text:ADM Produce 30 million pounds Produce 40 million pounds Produce 30 million pounds Ajinomoto Ajinomoto makes $180 million profit. ADM makes $180 million profit Ajinomoto makes $160 million profit. ADM makes $200 million profit Produce 40 million pounds Ajinomoto makes $200 million profit. ADM makes $150 million profit Ajinomoto makes $150 million profit. ADM makes $160million profit Back to Table of contents
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