When can a grim trigger prevent oligopolists from breaking an agreement?
If the discount (interest) rate is low, the grim trigger can deter cheating, as the players derive greater profits over the years by keeping the agreement rather than by breaking it in the first year.
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Refer to Table 2-2. Assume Nadia's Neckware only produces ascots and bowties. A combination of 16 ascots and 6 bowties would appear
A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.
An import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________
A) imports; decrease; imports; increase B) imports; increase; imports; decrease C) exports; increase; exports; decrease D) exports; decrease; exports; increase E) exports; increase; imports; decrease
The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO?
What will be an ideal response?
Only one out of five families that fall into poverty in one year are out of poverty in the following year
Indicate whether the statement is true or false