Author Question: Why are many oligopolistic market outcomes conveniently described by a Prisoners' Dilemma? A) The ... (Read 52 times)

james · **on:** Jul 1, 2018

Why are many oligopolistic market outcomes conveniently described by a Prisoners' Dilemma?

A) The firms can always achieve the outcome that maximizes joint outcomes.
B) The firms could do better than the Nash equilibrium if they collude.
C) The outcome of a Prisoners' Dilemma is always efficient.
D) The outcome of a Prisoners' Dilemma is always identical to the perfectly competitive outcome.

Question 2

Refer to Figure 9.7. Before the policy was implemented, producer surplus was

A) 30.
B) 60.
C) 45,000.
D) 90,000.
E) 180,000.