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.
According to the matrix shown, the profit-maximizing outcome for the firms is:
A. to act like a monopolist and both collude.
B. for Firm A to compete and Firm B to collude.
C. to both compete.
D. for Firm B to compete and Firm A to collude.
Answer: A
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A. Federal Deposit Insurance Corporation and Controller of the Currency B. Board of Governors and the 12 Federal Reserve Banks C. U.S. Treasury Department and Bureau of Engraving and Printing D. Federal Open Market Committee and Office of Thrift Supervision
In the above figure, the distance between points T and U represents
A) an expansion. B) a trough. C) a peak. D) a recession.
When a business purchases a $50,000 computer system by writing a check, the business's balance sheet will:
A. show an increase in assets and liabilities for $50,000. B. not reflect any increase in assets or liabilities, only a change in the composition of assets. C. only show an increase in assets of $50,000. D. only show an increase in liabilities of $50,000.
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