Author Question: In the above figure, if the firm is in monopolistic competition, its price will be A) 1. B) 2. ... (Read 129 times)

bobypop · **on:** Jun 29, 2018

In the above figure, if the firm is in monopolistic competition, its price will be

A) 1.
B) 2.
C) 3.
D) 4.

Question 2

Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix shows the economic profit that each firm can make.

If the game is played repeatedly and Felix and Oscar both use a tit-for-tat strategy, then ________. A) Felix will make 10 million of economic profit and Oscar will cheat
B) Felix and Oscar will each make 1 million of economic profit
C) Felix will make -2 million economic of profit and Oscar will cheat
D) Felix and Oscar will each make 10 million of economic profit