When decisions are guided strictly by short-run gains, this is ...

[Deast7027]

When decisions are guided strictly by short-run gains, this is known as
 
  A) opportunistic behavior.
  B) the prisoners' dilemma.
  C) tit-for-tat strategy.
  D) a positive-sum game.

Question 2

Which of the following best describes the difference between cost-of-service regulation and rate-of-return regulation?
 
  A) Costs determine prices in cost-of-service regulation and prices determine costs in rate-of-return regulation.
  B) Costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make a normal rate of return.
  C) Variable costs determine prices in cost-of-service regulation and prices are set in rate-of-return regulation so the firm can make an economic profit.
  D) Regulators determine prices in cost-of-service regulation and market forces determine prices in rate-of-return regulation.

[sarah_brady415]

Answer to Question 1

A

Answer to Question 2

B