Why Do Economists Refer to the Pricing Strategies of Oligopoly

question 1

Essay

Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?

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Definitions:

Marginal Tax Rates

The rate of tax applied to the last dollar of income, which varies depending on income level and tax bracket.

Tax Revenue

The income that a government receives from taxation of individuals and businesses.

Rational Expectationists

Economists advocate the view that people base their choices on logical thinking, accessible data, and historical experiences.

Government Policy

A course of action or a series of actions taken by a government to address a particular issue, problem, or need in society.