Two duopoly firms that sell an identical good form a cartel. They decide to collude and fix the price of their good. In this prisoners' dilemma type situation, the likely outcome is
A) both will cheat.
B) neither one will cheat.
C) only one will cheat.
D) It is impossible to say.
A
Economics
You might also like to view...
Even if two products have different characteristics, such as color, the products are only considered heterogeneous if consumers
A) consider the two products as perfect complements. B) consider the two products as perfect substitutes. C) consider the two products as imperfect substitutes. D) consider the two products as imperfect complements.
Economics
Which of the following services have experienced declines in relative prices due to productivity increases?
a. medical services b. restaurant meals c. theatrical performances d. Internet access services
Economics