If each player responds by imitating the action of his opponent in the previous round of a repeating game, the players are following a:
A. repeated cooperation agreement.
B. collusion plan.
C. commitment strategy.
D. tit-for-tat strategy.
D. tit-for-tat strategy.
You might also like to view...
If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market
A) higher; increase; 100% B) higher; increase; 50% C) lower; increase; 100% D) lower; increase; 50% E) higher; decrease; 0%
Consider the two graphs above. Suppose that improvements in technology enable farmers to produce two or more harvests of the same crop each year. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
A) DGC. B) BDC. C) BGC. D) 0FGQ1. E) none of the above
Last year Best Bank received $60 million in interest payments from borrowers, and $20 million in loans were written off as uncollectible. The bank paid out $22 million in interest to its depositors and collected $35 million for various fees it charged. Administration costs were $15 million, and taxes were $3 million. What was the value of Best Bank's accounting profits?
a. $35 million b. $15 million c. $50 million d. $57 million