BA 372 Lesson 7 Assignment 5

BA 372 Lesson 7 Assignment 5 - Ashley B. Hilliard...

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Ashley B. Hilliard 258-10-0169 July 5, 2010-October 22, 2010 BA 372 Lesson#7, Assignment 5 1.What is the prisoners’ dilemma and what does it have to do with oligopoly? Prisoners’ dilemma is a particular “game” between tow captured prisoners that illustrates why corporations is different to maintain even when its mutually beneficial. Each oligopoly has an incentive to cheat. Just as the self-interest drives the prisoners’ dilemma to confess, self- interested makes it difficult for the oligopoly to maintain the cooperative outcome with low production, high prices, and monopoly profits. 2. What is resale price maintenance and why is it controversial? Resale price maintenance prevents the retailers form competing on price. It is controversial because business practices that appear to reduce competition may in fact have a legitimate purpose and this makes the application of antitrust laws more difficult. 3. Return to the chapter’s discussion of the Jack and Jill’s water duopoly. Suppose that
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This note was uploaded on 02/22/2011 for the course ECON BA 372 taught by Professor Dickliter during the Summer '10 term at Andrew Jackson.

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BA 372 Lesson 7 Assignment 5 - Ashley B. Hilliard...

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