Professor Williamson Is a Long-Term Smoker

question 15

Multiple Choice

Professor Williamson is a long-term smoker. Since it was recently announced that smoking will be banned on campus, he has decided to quit. According to the research, what is the likelihood that Professor Williamson will have achieved sustained abstinence at the end of a year?

• A) 50%
• B) 18.5%
• C) 46%
• D) 70%

---

Definitions:

Fringe Firms

Fringe firms are smaller companies in a market that compete alongside the larger, dominant firms, typically having a minimal market share.

Competitive Firms

Companies that operate in a market where no single producer or consumer has the market power to influence prices significantly.

Oligopolistic Market Outcomes

In an oligopolistic market structure, outcomes often include limited competition, price stability or price wars, and potential for collusion among the few dominant firms.

Prisoners' Dilemma

A fundamental problem in game theory showing why two individuals might not cooperate, even if it appears that it is in their best interest to do so.