In most business situations where firms compete, often they can escape the prisoner's dilemma and reach the most profitable outcome. Which of the following is a reason for this?
A) Firms engage in aggressive advertising to overcome the barriers to loyalty.
B) Most games are one-shot games so firms learn from their mistakes.
C) Most games are repeated games and firms can employ retaliation strategies against those who do not cooperate.
D) Firms are constantly improving their products and anticipating changing consumer tastes.
Answer: C
Economics
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The point at which quantity supplied and quantity demanded are the same:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium
Economics
Which of the following does not apply to a firm that has shut down in the short run?
a. Variable cost is zero. b. Total revenue is zero. c. Total cost exceeds total revenue. d. Total cost is zero. e. Fixed cost is positive.
Economics