If the game in Scenario 13.17 were to be infinitely repeated, ...

[jc611]

If the game in Scenario 13.17 were to be infinitely repeated, waging a price war might be a rational strategy
 
  A) because there would be no short-term losses.
  B) because the short-term losses might be outweighed by long-term gains from preventing entry.
  C) if the potential entrant were irrational.
  D) if the monopolist had excess capacity.
  E) if there were no sunk costs to the potential entrant.

Question 2

When minority workers gain access to better occupations, they are evenly distributed within each occupational group.
 
  Indicate whether the statement is true or false

[covalentbond]

Answer to Question 1

B

Answer to Question 2

F