Price wars can be the result of A) a cooperative equilibrium. ...

[joe]

Price wars can be the result of
 
  A) a cooperative equilibrium.
  B) a firm playing a tit-for-tat strategy in which last period the competitors complied with a collusive agreement.
  C) new firms entering the industry and immediately agreeing to abide by a collusive agreement.
  D) new firms entering an industry and all firms then finding themselves in a prisoners' dilemma.

Question 2

In the long run, a monopolistically competitive firm ________ make an economic profit and a monopoly ________ make an economic profit.
 
  A) can; can
  B) can; cannot
  C) cannot; can
  D) cannot; cannot

[beccamahon]

Answer to Question 1

D

Answer to Question 2

C

[joe]

Correct answers!

[beccamahon]

Great! Please up vote