In a repeated? game, deterring entry
A) is not possible.
B) is not a rational strategy if money is lost fighting the first potential entrant.
C) may require losing money fighting the first potential entrant.
D) cannot form a subgame perfect Nash equilibrium.
Answer: C) may require losing money fighting the first potential entrant.
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Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. their agreement is likely to eventually collapse. C. they will charge a higher price than a monopolist would have charged. D. they will earn a larger profit than a monopolist would have earned.
What did Adam Smith perceive was primarily responsible for improving standard of living?
What will be an ideal response?
Which of the following sayings best reflects the concept of opportunity cost?
A. "You can't teach an old dog new tricks." B. "There is no such thing as a free lunch." C. "I have a baker's dozen." D. "There's no business like show business."
In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the long-run equilibrium?
A. P1 B. E2 C. E3 D. E1