A One Shot Game in a Prisoner's Dilemma Game

question 79

Multiple Choice

A one shot game in a prisoner's dilemma game:

• A)the prisoner has a chance of confessing before being shot.
• B)implies there are no consequences to decisions outside the payoffs mentioned in the game.
• C)allows players to punish opposing player for choosing to fink.
• D)players repeatedly interact with each other.

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Definitions:

Monopoly Firm

A business entity that is the sole provider of a particular product or service in the market, resulting in the lack of competition.

Pure Monopoly

A market structure where a single seller controls the entire market for a particular good or service with no close substitutes.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer, having a high degree of interchangeability.

Socially Optimal Output

The level of production of goods and services that leads to the maximum possible economic efficiency and welfare in society, considering both benefits and costs.