Author Question: A prisoner's dilemma can be described as a situation in which a. a decision maker is uncertain ... (Read 50 times)

CharlieWard · **on:** Jun 30, 2018

A prisoner's dilemma can be described as a situation in which
a. a decision maker is uncertain about the potential punishment for something done in the past
b. an individual decision maker finds it in his best interest to pursue a course of action that can lead to a less than desirable outcome for the group
c. producers act so as to avoid maximizing profits because of government retaliation
d. individual firms seeks to maximize their own profits with no regard for the group
e. the summation of individual demand curves creates an inelastic demand curve facing the industry

Question 2

When an activity results in the imposition of external costs, markets will produce more than the socially optimal level of that activity.
a. True
b. False