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, how much will be produced if both firms collude?
A. 85 million units
B. 70 million units
C. 65 million units
D. 50 million units
Answer: D
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Quotas are costly to consumers because
A. import competition increases for domestic goods. B. the supply of the imported good increases. C. consumers have to pay higher-prices. D. the price of the imported good falls.
An expansion ends when the economy
A) hits a trough and then enters a recession. B) hits a peak and then enters a recession. C) begins to grow following a peak. D) has grown for two quarters in a row.
A competitive market is in equilibrium. Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________, and the equilibrium quantity of cream cheese ________.
A) rises; decreases
B) rises; increases
C) falls; decreases
D) does not change; does not change
E) falls; increases
"I don't feel so good. I shouldn't have had that last doughnut." Which statement best describes this situation?
a. The marginal utility of the last doughnut was positive. b. The marginal utility of doughnuts is still increasing. c. The total utility from eating doughnuts is negative. d. The marginal utility of the last doughnut was negative. e. The marginal utility of the next doughnut will be positive.