Investment spending is a leakage from the circular flow model.

If a cartel is unable to monitor its members and punish those firms that violate the agreement, then

A) the member firms will each act as price setters. B) the cartel will prosper in the long run. C) the market will become a monopoly. D) the cartel will fail.

In the prisoner's dilemma game:

A. neither player has a dominant strategy. B. both players have a dominant strategy. C. only one player will ever have a dominant strategy. D. All of these may be true in a prisoner's dilemma game.