Answer to Question #185000 in Macroeconomics for James

Question

QUESTION 26

High monopoly profits are possible.

1. In a perfectly competitive market.
2. If each of the oligopolists cooperates in holding down output.
3. If each of the oligopolists lower their price.
4. If each of the oligopolists increase their output.
5. All of the above.  

QUESTION 27

The way out of a prisoner’s dilemma is to find:

1. Somebody to step in for you.
2. A way to penalize those who do not cooperate.
3. A way to penalize those who do cooperate.
4. A way to reward those who do not cooperate.
5. A needle in a haystack.

QUESTION 28

Oligopolists may choose to act in a way that generates:

1. Equal profits for all competitors.
2. The largest surplus for consumers.
3. Pressure on each firm to stick to its agreed quantity of output.
4. All of the above.
5. None of the above.

Answer 1

QUESTION 26

2:If each of the oligopolists cooperates in holding down output.

QUESTION 27

5:A needle in a haystack

QUESTION 28

3:Pressureon each firm to stick to its agreed quantity of output.