Sophisticated arguments for Activist Trade policy Table 11-1: Two-Firm Competition Airbus boeing Produce Don’ t produce 5 Produce 5 100 100 0 Don’ t produce 0 0 Equilibrium outcome is a=0 and B=100: Airbus does not produce and Boeing produces Copyright C 2003 Pearson Education, Inc Slide 11-9Copyright © 2003 Pearson Education, Inc. Slide 11-9 Airbus Boeing -5 -5 0 0 0 100 0 100 Produce Produce Don’t produce Don’t produce Equilibrium outcome is A= 0 and B=100: Airbus does not produce and Boeing produces. Table 11-1: Two-Firm Competition Sophisticated Arguments for Activist Trade Policy