In a Repeated Game with a Credible Punishment a Collusive

question 14

Multiple Choice

In a repeated game with a credible punishment a collusive equilibrium may revert to a Cournot equilibrium if

• A)marginal costs increase
• B)interest rates rise
• C)output prices decrease
• D)taxes increase

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Definitions:

Demographics

Statistical data relating to particular populations, especially those concerning individuals' characteristics such as age, race, gender, income, and education.

Ethnic Group

is a community of people sharing a common cultural background, ancestry, language, and traditions.

Socioeconomically

Refers to the social and economic factors and how they influence individuals and communities.

Reluctance

A hesitancy or unwillingness to take action or embark upon a specific course due to doubt or apprehension.