In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?
Collusion for an oligopolist is similar to remaining silent in the prisoners' dilemma. In each case, those involved are acting more in the interest of the group as opposed to focusing on a more self-interested strategy. In addition, collusion generates a favorable group result with maximum economic profit in the industry; remaining silent generates a favorable group result with shortest prison sentences for all prisoners combined.
You might also like to view...
Net exports of goods and services are defined as the
A) value of the goods we sell to foreigners. B) income we receive from selling goods to foreigners. C) value of exports minus the value of imports. D) value of exports minus the income we receive from foreigners. E) value of exports plus the income we receive from foreigners.
Most college professors are granted tenure after six years of employment. Tenure implies a lifetime appointment. What problem does this situation create, and how can colleges minimize the problem?
What will be an ideal response?
If a price taker in a competitive market is going to maximize profits, he must
a. increase the price of his product. b. minimize his fixed costs of production. c. minimize the per-unit cost of producing the good. d. use the highest valued set of resources to produce his product.
Supply curves are ________________ upward sloping
A) always B) usually C) rarely D) never