If It Is Not Profitable for More Than One Firm

question 167

Multiple Choice

If it is not profitable for more than one firm to be in an industry, we have an example of

• A) monopoly due to ownership of key resources.
• B) monopoly due to governmental entry restrictions.
• C) monopoly due to economies of scale.
• D) pure competition.

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Definitions:

Two-Person Game

A strategic interaction between two players where the choices of each player affect the outcome for the other, typically analyzed in game theory.

Strategies

Plans of action designed to achieve a long-term or overall aim, commonly applied within contexts such as business, military, and gaming.

Dominant Strategy

In game theory, an approach that secures the optimal result for a participant, no matter the actions taken by other competitors.

Cooperate

To work or act together towards a common goal or benefit, often seen in contexts of game theory, business, and social interactions.