A cooperative game is
A. the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry.
B. a game in which firms will not negotiate in any way.
C. companies colluding in order to make higher than competitive rates of return.
D. when plans made by firms are known as game strategies.
Answer: C
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Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities. OPEC is the best well known of these
How are such cartels expected to help the developing countries? At times importing countries profess support for such schemes. Can you think of any logical basis for such support? How are cartels like monopolies, and how are they different from monopolies. Why is there a presupposition among economists that such schemes are not likely to succeed in the long run?
When a monopoly is maximizing its profits,
A) MR > MC. B) MR < MC. C) dMR/dQ > dMC/dQ. D) dMR/dQ < dMC/dQ.
When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power. This statement describes the:
a. substitution effect. b. income effect. c. consumer equilibrium effect. d. price effect.
Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:
a. demand for honey to increase. b. demand for honey to decrease. c. quantity demanded of honey to decrease. d. price of honey to decrease. e. quantity demanded of honey to increase.