If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, this reduces its profit by

At the profit-maximizing level of output, marginal profit

A) is also maximized. B) is zero. C) is positive. D) is increasing. E) may be positive, negative or zero.

A commitment strategy is an agreement in which players agree to:

A. submit to a penalty in the future if they defect from a given strategy. B. cooperate before the game begins. C. cooperate in repeated games until someone defects. D. None of these is a definition of a commitment strategy.