The prisoner’s dilemma has implications for the workings of oligopoly markets. The outcome in the prisoner’s dilemma situation for oligopoly firms is
A. beneficial to society, in that the players cannot easily collude, so output is greater, and prices are lower.
B. beneficial to the players, since they can maintain a cartel agreement easily.
C. of little benefit to society, since the players produce the monopoly output.
D. beneficial to no one.
Answer: A
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Refer to the figure above. What is the maximum possible social surplus?
A) $100 B) $150 C) $225 D) $375
Average fixed cost (AFC)
A) is the fixed cost divided by the average sales price of the final good. B) is the fixed cost divided by the quantity of output produced. C) is $0 when no output is produced. D) is always less than average variable cost (AVC).
Recovery is the phase of the business cycle during which real GDP reaches its maximum
a. True b. False Indicate whether the statement is true or false
Consumers can avoid excess tax burden by purchasing more goods that are exempt from sales taxes.
Answer the following statement true (T) or false (F)