In the game in which two oil companies own adjacent oil fields, the companies will not use the oil efficiently because
a. neither company has a dominant strategy in the game.
b. the companies collude and produce a quantity of oil that is less than the socially-efficient quantity.
c. the pool from which they recover the oil is a common resource.
d. the pool from which they recover the oil is not large enough to allow both companies to earn a positive profit.
c
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Perfect price discrimination is the same thing as predatory pricing
Indicate whether the statement is true or false
Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate. B) a rise in income and a decline in the interest rate. C) a decline in income and the interest rate. D) a decline in income and a rise in the interest rate.
It is possible for one person to have a comparative advantage in the production of all products?
a. True b. False
Which of the following pairs of goods would most likely exhibit a cross price elasticity of 2.2?
a. hamburgers and fries b. peanut butter and jelly c. butter and margarine d. tennis balls and tennis rackets