Author Question: In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if ... (Read 78 times)

lunatika · **on:** Jun 29, 2018

In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement.

A) complies with; complies with
B) complies with; cheats on
C) cheats on; complies with
D) cheats on; cheats on

Question 2

An increase in Meta's wealth from 3,000 to 6,000 raises her utility from 80 units to 100 units. If she is risk averse, with a wealth of 9,000 her utility might be

A) 99 units.
B) 114 units.
C) 120 units.
D) 126 units.