IDNLearn.com offers a comprehensive solution for finding accurate answers quickly. Join our Q&A platform to get accurate and thorough answers to all your pressing questions.
Answer:
1. AirEurope should produce if it wants to maximize its profit.
2. False
Explanation:
New payoffs after subsidy:
Aircraft/ AirEurope Produce Not Produce
Produce -3 , 6 75 , 0
Not Produce 0 , 74 0 , 0
With a $9 million subsidy, regardless of whether Aircraft produces or not, AirEurope should produce if it wants to maximize its profit.
The statement is false (Aircraft would earn a negative payoff if it enters).