According to the matrix shown, how much will be produced if both firms collude?
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. 50 million units
B. 65 million units
C. 70 million units
D. 85 million units
A. 50 million units
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If the Pareto criteria are taken literally, _____ percent of United States residents must agree for a policy change to be a move towards efficiency
a. 25 b. 50 c. 75 d. 100
If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then
A. Increasing opportunity costs will occur with greater tank production. B. The production possibilities curve between tanks and automobiles will appear as a straight line. C. The production possibilities curve between tanks and automobiles will shift outward. D. Decreasing opportunity costs will occur with greater automobile production.