The prisoner's dilemma provides an explanation for
a. the price wars that sometimes occur in oligopolies
b. the ability of firms in an oligopoly to extract the entire consumer surplus
c. the collusive behavior that sometimes occurs in an oligopoly
d. the failure of firms in non-competitive industries to maximize profits
e. an irrational behavior that occurs in competitive markets
A
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The table below represents five points on the production possibility frontier for the small country of Bistro, which produces only crackers (measured in thousands of boxes) and cheese (measured in thousands of pounds): A B C D E Crackers 40 30
20 10 0 Cheese 0 5 10 15 20 Does the production possibility frontier demonstrate the law of increasing opportunity cost? How can you tell?
Which of the following correctly describes the national debt?
a. The excess of annual federal expenditures over annual federal tax revenues. b. Annual federal expenditures less annual federal tax revenues plus foreign U.S. bonds purchases. c. The total amount of money owed by the federal government. d. None of the above.