Answer the following questions true (T) or false (F)
1. A prisoner's dilemma leads to a noncooperative equilibrium.
2. A member of a cartel earns more profits by producing more than its quota and selling at a price higher than the cartel's price.
3. Collusion is common in oligopoly and monopolistically competitive industries.
1. TRUE
2. FALSE
3. FALSE
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In the above figure, the best affordable point is
A) 8 hamburgers and 0 magazines. B) 0 hamburgers and 6 magazines. C) 4 hamburgers and 3 magazines. D) some combination that is not given above.
A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm. Those who check in early are much more likely to use the hotel's pool. Explain why this price difference may not be price discrimination
What will be an ideal response?