If i confess too i will only have a 3 year sentence

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Unformatted text preview: ence will be 10 years. If I confess too, I will only have a 3-year sentence. Oligopoly Game Oligopoly Team A $10 Team B $9 $8 $10 16, 16 13, 19 9 ,22 $9 18, 13 15, 15 12, 18 $8 20, 10 16, 12 13, 14 An Oligopoly Price-Fixing Game Game • Duopoly – a market structure with two firms. • Cartel – a group of firms that enter into a collusive agreement. • Collusive agreement – an agreement between 2 or more firms to restrict output, raise prices and increase profits – Illegal in Canada Individual Firm MC MC 10 ATC 6 Minimum ATC 0 1 2 3 4 5 Quantity (thous. of Quantity switchgears/week) switchgears/week) Price and cost (thous. of $/ unit) Price and cost (thous. of $/ unit) Costs and Demand Industry 10 6 D 0 1 2 3 4 5 6 7 Quantity (thous. of Quantity switchgears/week) switchgears/week) Colluding to Make Monopoly Profits MC ATC 10 9 8 6 Economic Profit Price and cost (thous. of...
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