The Prisoner's Dilemma Has Implications for the Workings of Oligopoly

question 26

Multiple Choice

The prisoner's dilemma has implications for the workings of oligopoly markets.The outcome in the prisoner's dilemma situation for oligopoly firms is

• A)beneficial to society, in that the players cannot easily collude, so output is greater, and prices are lower.
• B)beneficial to the players, since they can maintain a cartel agreement easily.
• C)of little benefit to society, since the players produce the monopoly output.
• D)beneficial to no one.

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Definitions:

Agriculture

The practice of cultivating land and breeding animals to provide food, fiber, medicinal plants, and other products.

Technological Progress

The overall process of invention, innovation, and diffusion of technology or processes.

Farm Incomes

The earnings from agricultural activities, considering the revenue from crop and livestock sales minus production costs.

U.S. Agricultural Industry

The sector of the United States economy that includes production, processing, and marketing of crops and livestock.