A risk-averse person
a. has a utility curve where the slope increases with wealth, and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
b. has a utility curve where the slope increases with wealth, and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
c. has a utility curve where the slope decreases with wealth, and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
d. has a utility curve where the slope decreases with wealth, and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
c
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A unique feature of oligopoly markets is
a. market power b. mutual interdependence c. barriers to entry d. product heterogeneity e. pricing power
Given the situation in the matrix shown, the two firms are likely to collude only if:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. it is a repeated game.
B. they will only make the decision once.
C. The two firms will always choose to compete.
D. they are the only two firms with dominant market share.