Which of the following is a Pareto improvement? A) A ...

[mia]

Which of the following is a Pareto improvement?
 
  A) A monopolist loses its monopoly when a government policy allows another firm to enter the market, resulting in lower prices and higher quantity available for consumers.
  B) A government policy is implemented that results in the middle class being better off, and the very rich only have to pay a little bit more in taxes.
  C) A government policy removes a market failure.
  D) None of the above.

Question 2

When a prisoners' dilemma game is repeated a finite number of times (T)
 
  A) cooperation unravels during the first round of the game, resulting in the static game Nash equilibrium.
  B) cooperation continues until the T-2 round, where the players will switch to a non-cooperative Nash equilibrium.
  C) firms cooperate and achieve the collusive Nash equilibrium for all rounds.
  D) None of the above.

[carlsona147]

Answer to Question 1

D

Answer to Question 2

A

[mia]

Gracias!

[raenoj]

Excellent