In the Game Theory Model of Oligopoly

question 66

Multiple Choice

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

---

Definitions:

Cavern

A large, naturally occurring underground chamber or series of chambers created by the weathering of rock, often found in limestone regions.

Water Shortages

Situations where the available water supply is insufficient to meet the demands of water usage.

Supply

The total amount of a product or service available for purchase at any given time.

Flat Tract

A large piece of land with minimal to no slope, often used in agriculture or construction due to its ease of modification.