Suppose There Are Only Two Firms in an Industry

question 59

Multiple Choice

Suppose there are only two firms in an industry.If they each set a high price,they each earn $5000.If they each set a low price,they each earn $2500.If one firm sets a low price while the other sets a high price,the low- price firm earns $7000 while the high- price firm earns $1000.Does a prisoners' dilemma exist?

• A)yes,the Nash equilibrium does not maximize the joint payoff
• B)yes,because there is always a prisoner's dilemma in game theory
• C)no,the Nash equilibrium does not maximize the individual payoff
• D)no,the Nash equilibrium does not maximize the joint payoff
• E)it cannot be determined from the information provided

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Executive Branch

The branch of government responsible for enforcing laws and policies, typically headed by the president or prime minister at the national level.

U.S. Senate

One of the two houses of the United States Congress, composed of senators from each state who serve six-year terms, with responsibilities including legislation and oversight of the government.

Administrative Law

The collection of rules and decisions made by administrative agencies to fill in particular details missing from constitutions and statutes.

Substantive Rules

Laws that define, describe, regulate, and create legal rights and obligations, as opposed to procedural laws that dictate the methods through which these rights and obligations are enforced.