If Firm a and Firm B Are Playing a Finitely

question 72

Multiple Choice

If Firm A and Firm B are playing a finitely repeated game in which they both believe there is a 90 percent chance that the game will continue each period, all of the following are true except which one?

• A)Both managers will worry about punishment from cheating.
• B)Tacit collusion is not possible.
• C)Both firms can earn higher profit by cooperating.
• D)There is not an end- game problem.

---

Definitions:

Pacific Coastline

The western boundary of the United States and Canada facing the Pacific Ocean, known for its diverse ecosystems and scenic beauty.

Tsunamis

Large, often destructive sea waves caused by underwater earthquakes, volcanic eruptions, or landslides.

Correct Verb

The accurate or suitable use of a verb in a sentence, aligning with the subject in number and tense for grammatical consistency.

Careful Planning

The process of thoughtfully organizing tasks and resources in order to achieve a specific goal, emphasizing attention to detail and foresight.