The duopolists' dilemma refers to the situation in which:
A. duopolists would be better off maintaining high prices but face an incentive to choose a low price.
B. duopolists can only earn high profits by breaking the law.
C. duopolists who are engaged in price fixing have an incentive to report the behavior to the government.
D. duopolists do not have a dominant strategy.
Answer: A
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Your spouse complains that her 6% raise this year will not keep up with the increase in prices. In other words, she is unable to buy the same basket of goods with her 6% raise. Therefore, she believes that her
a. nominal income and real income increased. b. nominal income increased, but their real income decreased. c. nominal income and real income decreased. d. nominal income decreased, but their real income increased.
Which is not a form of product differentiation for the monopolistically competitive firm?
A. Brand names and trademarks. B. Location and accessibility. C. Standard weekday and weekend hours. D. Promotion and packaging.
Explain what is meant by the fundamental value of a share of stock
What will be an ideal response?
Worker migration will cause wage rates to equalize across two countries if all of the following conditions are met except:
A. migration is motivated strictly by wage differentials. B. neither nation restricts or interferes with migration. C. both countries use the same currency. D. migration has no cost.