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Assume that the competition between Boeing and Airbus can be characterized by the following matrix where the first number in each cell denotes the
Assume that the competition between Boeing and Airbus can be characterized by the following matrix
where the first number in each cell denotes the payoff that Boeing receives and the second number is the payoff that Airbus receives. Then a subsidy of 10 provided to Boeing by the US government will
change nothing
will increase US welfare
will negatively affect US welfare
result in both firms leaving the market