According to the matrix shown, the profit-maximizing outcome for the firms is:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. to act like a monopolist and both collude.
B. to both compete.
C. for Firm A to compete and Firm B to collude.
D. for Firm B to compete and Firm A to collude.
A. to act like a monopolist and both collude.
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Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease
A) by more than 300. B) by less than 300. C) by 300. D) by some amount that cannot be determined without more information.
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What will be an ideal response?
Social regulation is focused on all of the following EXCEPT
A) the impact of production on the environment and society. B) better working conditions, and safer and better products. C) a better quality of life through a less polluted environment. D) ensuring costs are minimized and benefits are maximized.
A lump-sum tariff imposed on foreign competitors will:
A. decrease the profits of domestic firms when demand is high. B. have no impact on domestic firms' profits when demand for domestic goods is high. C. increase the profits of domestic firms when demand is high. D. always remove foreign competitors from the market.