Author Question: In the game theory model of oligopoly, a. firms will be successful in colluding to raise prices b. ... (Read 24 times)

imowrer · **on:** Jun 30, 2018

In the game theory model of oligopoly,
a. firms will be successful in colluding to raise prices
b. one firm raises its prices, and other firms follow suit
c. firms will match other firms' price cuts but not their price increases
d. firms may attempt to avoid the worst outcome but may achieve a less-than-optimal outcome
e. firms never avoid the worst outcome

Question 2

A government that uses a bureau rather than a private firm to provide some good or service
a. may have less opportunity for officials and legislators to reward friends and supporters with jobs
b. will always incur higher costs of production
c. will lose the ability to make decisions via the hierarchy of the market
d. may be better able to control details of production
e. will not be able to sell the good or service after it is produced