-Figure 12

question 64

Multiple Choice

-Figure 12.2 shows the decision tree for setting price for the only two firms in a market.One way for both firms to charge a high price is for both firms to

• A) play their dominant strategies.
• B) collude.
• C) expand output.
• D) any of the above

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Definitions:

Maker

The party in a financial instrument, like a check or promissory note, who is responsible for the payment of the amount specified.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and to a specific person or bearer.

Note

A written promise to pay a specified amount of money at a certain time, often used in finance as a type of informal loan agreement or debt instrument.

Nonnegotiable

indicates an item that cannot be transferred or assigned to another party through endorsement or delivery.