Firm B     Monopoly price Competitive price   Monopol…

  Firm B     Monopoly price Competitive price   Monopoly price A: $5 B: $5 A: -$1 B: $8 Firm A         Competitive price A: $8 B: -$1 A: $0 B: $0 The above payoff matrix shows the economic profits (in millions of dollars) of two firms in a duopoly that have agreed to a cartel agreement to restrict their output and set their prices equal to the monopoly price. Assuming the game is played once, the equilibrium outcome is where