ch 17 t/f

if a prisoners' dilemma is repeated, participants are more likely to independently maximize profit and reach nash equilibrium

false, repeated games are more likely to generate cooperation because penalties for cheating can be enforced

antitrust laws require manufacturers to engage in "resale price maintenance" or "fair trade"

false, sometimes courts view retail price maintenance as price fixing and declare it illegal

the more firms in an oligopoly, the more the market outcome looks like that generated by a monopoly

false, the more firms, the more markets approach the competitive solution

cooperation is easily maintained in oligopolies because cooperation maximizes each individual firm's products

false, cooperation maximizes profits if agreement isn't violated, if a firm cheats and produces more it increases it's profit

dominant strategy for oligopolists is cooperating with groups and maintaining low production regardless of what other oligopolists due

false, dominant strategy is increasing production regardless of other firms' choice

when firms cooperate with one another, it's generally good for society

false, it raises prices above marginal cost and reduces output below the socially optimal level

when oligopolists collude and form a cartel. market outcome is similar to that generated by a perfectly competitive market

false, it's the same as that generated by monopolists

oligopolies are market structures in which many firms sell similar but not identical products

false, oligopolies are where few sellers offer similar or identical products

a unique feature of oligopolies is that actions of one seller have significant impacts on profits of other sellers

true

crude oil is an example of an oligopolistic market

true

predatory pricing occurs when firms cut prices with intentions of driving competitors out of the market so the firm can become a monopolist and raise prices

true

price and quantity generated by nash equilibrium is closer to competitive solutions than price and quantity generated by cartels

true

prisoners' dilemma demonstrates why it's difficult to maintain cooperation even when it's mutually beneficial

true

there's constant tension in oligopolies between cooperation and self-interest because after agreeing to reduce production, it's profitable for firms to cheat and produce more

true

when firms cooperate with one another, it's generally good for cooperating firms

true