If an Oligopolistic Game Is Repeatedly Played,which of the Following

question 66

Multiple Choice

If an oligopolistic game is repeatedly played,which of the following can occur?

• A) Players can learn ways to cooperate and make an economic profit.
• B) The competitive price and output consistently is the final result.
• C) Firms can learn how to cheat more effectively on the other player.
• D) One firm will be driven out of business.
• E) An implicit agreement is reached in which one firm constantly cheats on the cartel and the other firm complies with it.

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Definitions:

S Corporation

A close business corporation that has most of the attributes of a corporation, including limited liability, but qualifies under the Internal Revenue Code to be taxed as a partnership.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, or other legal entities to fund public expenditures.

Close Corporation

A private company characterized by a limited number of shareholders, and typically, more informal management and operations.

State Of Incorporation

The jurisdiction under whose laws a corporation is registered and operates, determining its legal obligations and protections.