In using a prisoners' dilemma game to model the behavior of firms within an oligopoly, we are assuming that:
a. each firm seeks to act in its best interest.
b. each firm seeks to act in the best interest of the industry as a whole.
c. all firms will pursue the same strategy.
d. each firm will pursue a different strategy.
Ans: a. each firm seeks to act in its best interest.
Economics
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Over the last 100 years in the United States, unemployment reached its highest rate
A) in the 1920s. B) in the 1930s. C) in the 1980s. D) in the 1970s.
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When consumers have less information about a product than do sellers, then this is the situation of
A) asymmetric information. B) symmetric information. C) caveat emptor. D) a market failure.
Economics