Why are many oligopolistic market outcomes conveniently described by a Prisoners' Dilemma?
A) The firms can always achieve the outcome that maximizes joint outcomes.
B) The firms could do better than the Nash equilibrium if they collude.
C) The outcome of a Prisoners' Dilemma is always efficient.
D) The outcome of a Prisoners' Dilemma is always identical to the perfectly competitive outcome.
B
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Crtically evaluat the following statement. "It is possible to calculate comparative advantage even when prices are not known."
What will be an ideal response?
Enlarging the number of grades a school will serve may reduce the amount of school segregation
Indicate whether the statement is true or false
Mary decreases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes. B) Good X and Good Y are complements. C) Good X is an inferior good. D) Good Y is an inferior good.
An increase in the price of oil causes
a. a decrease in the demand for substitute goods. b. an increase in the price of substitute goods. c. an increase in the demand for complementary goods. d. an increase in the price of complementary goods.