In Which of the Following Games Is It Clearly the Case

question 63

Multiple Choice

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society?

• A) Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.
• B) Two airlines dominate air travel between City A and City B, and each airline decides whether to charge "high" airfare or a "low" airfare on flights between those two cities.
• C) Two superpowers decide whether to build new weapons or to disarm.
• D) In all of the above cases, the cooperative outcome of the game is good for the two players and bad for society

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Definitions:

Inventory

The raw materials, work-in-process goods, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Cost System

A method used by businesses to track, record, and analyze costs associated with production or services.

Service Department

A segment within an organization that does not directly produce goods but supports other departments by providing services.

Pediatrics Department

A specialized medical department focused on the care, diagnosis, and treatment of infants, children, and adolescents.