Why is the prisoner's dilemma game useful in studying oligopoly behavior?
A) Because oligopolies make out like bandits.
B) To illustrate the problems encountered when making decisions under uncertainty.
C) To show that oligopolies behave as monopolists in the long run and earn positive economic profits.
D) To illustrate how barriers to entry lead to economic profits.
B
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OPEC has had a sustained effect on the price of oil since it was first founded in 1960
Indicate whether the statement is true or false
Mutual interdependence applies to actions of
a. monopolistic competitors b. oligopolists c. perfect competitors d. monopolists and oligopolists e. only oligopolist firms operating in different industries
Under school voucher systems, financial support goes to
A. to the school. B. to the state. C. to the city. D. to the family.
Economists usually have to make do with whatever data the world happens to give them
a. True b. False Indicate whether the statement is true or false