Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix shows the economic profit that each firm can make
If the game is played repeatedly and Felix and Oscar both use a tit-for-tat strategy, then ________. A) Felix will make $10 million of economic profit and Oscar will cheat
B) Felix and Oscar will each make $1 million of economic profit
C) Felix will make -$2 million economic of profit and Oscar will cheat
D) Felix and Oscar will each make $10 million of economic profit
D
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Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled c. Drivers of heavier, safer cares are more likely to run stop signs d. workers paid an hourly wage work harder than those on commission
Assuming all other textbook qualities except analytical level are the same, paired-choice majority voting will result in the committee:
Suppose a college economics department decides to use a single economics text for all sections of principles of economics. Also assume that the three individual members of the textbook selection committee have the following preferences.
A. being deadlocked and unable to decide on a book.
B. selecting the C/F book.
C. selecting the M/B book.
D. selecting the O/S book.