One common assumption in game theory is that firms
a. try to avoid the worst outcome
b. try to achieve the best outcome
c. minimize losses
d. always cooperate
e. always compete
Question 2
If the quality or quantity of a particular public service is very difficult to monitor, government is more likely to
a. produce the service itself
b. contract with private firms to supply the service
c. take over private corporations to produce the service
d. refuse to provide the service
e. raise the price to consumers of the service
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