Which of the following is likely to occur when a two-person game can be played repeatedly?
a. Collusion and cooperation among the players
b. The prisoner's dilemma
c. The industry demand curve will become perfectly elastic
d. The industry demand curve will become perfectly inelastic
e. There is no solution possible because of the indeterminate price quantity combinations
A
You might also like to view...
An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because
a. additional passengers are needed to balance the load. b. the marginal cost of additional passengers is very small. c. additional passengers add little to fixed costs. d. such passengers add more to profits than do those with reserved seats.
The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that
a. most economists do not regard the availability of natural resources as a determinant of productivity. b. the quantity of natural resources does not enter into any production function. c. inflation-adjusted prices of most natural resources have been stable or fallen over time. d. inflation-adjusted prices of most natural resources have risen over time.