Suppose that in the market for cell phone service the number of competitors has dwindled until D & C Romer Net and Spa T. Wireless have become the only providers left in the nation. Seeking to boost their profits, the two companies secretly agree to coordinated increase in their prices for cell phone minutes. This practice is known as a Nash equilibrium. tying. collusion. antitrust. predatory pricing.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.4P
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Suppose that in the market for cell phone service the number of competitors has dwindled until D & C Romer Net and Spa T.
Wireless have become the only providers left in the nation. Seeking to boost their profits, the two companies secretly agree to a
coordinated increase in their prices for cell phone minutes.
This practice is known as
a Nash equilibrium.
tying.
collusion.
antitrust.
predatory pricing.
Transcribed Image Text:Suppose that in the market for cell phone service the number of competitors has dwindled until D & C Romer Net and Spa T. Wireless have become the only providers left in the nation. Seeking to boost their profits, the two companies secretly agree to a coordinated increase in their prices for cell phone minutes. This practice is known as a Nash equilibrium. tying. collusion. antitrust. predatory pricing.
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