Which of the following is likely to occur when a two-person game can be played repeatedly?
a. Collusion and cooperation among the players
b. The prisoner's dilemma
c. The industry demand curve will become perfectly elastic
d. The industry demand curve will become perfectly inelastic
e. There is no solution possible because of the indeterminate price quantity combinations
A
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What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry?
a. Increased price elasticity of demand for the DVD player industry because XBOX are complements b. decreased price elasticity of demand for the DVD player industry because XBOX are complements c. Increased price elasticity of demand for the DVD player industry because XBOX are substitutes d. decreased price elasticity of demand for the DVD player industry because XBOX are substitutes
When the federal government deregulated the banking industry, savings and loans
a. continued to make only mortgage loans b. began to make riskier loans in areas such as speculative land development c. developed new loan markets which allowed them to prosper and expand d. began to merge with commercial banks e. lowered interest rates to attract new depositors
When market trades in water occur, we can assume that
a. the party releasing water is the loser. b. the party buying water is paying too much. c. the trade in something as important as water is immoral. d. the signals and incentives flowing from the trades help many in that water market, not just the buyer and seller directly.
A sum of money to be received in the future is worth more than a sum of money today.
Answer the following statement true (T) or false (F)