Author Question: Which of the following is a Pareto improvement? A) A monopolist loses its monopoly when a ... (Read 19 times)

mia · **on:** Jul 1, 2018

Which of the following is a Pareto improvement?

A) A monopolist loses its monopoly when a government policy allows another firm to enter the market, resulting in lower prices and higher quantity available for consumers.
B) A government policy is implemented that results in the middle class being better off, and the very rich only have to pay a little bit more in taxes.
C) A government policy removes a market failure.
D) None of the above.

Question 2

When a prisoners' dilemma game is repeated a finite number of times (T)

A) cooperation unravels during the first round of the game, resulting in the static game Nash equilibrium.
B) cooperation continues until the T-2 round, where the players will switch to a non-cooperative Nash equilibrium.
C) firms cooperate and achieve the collusive Nash equilibrium for all rounds.
D) None of the above.