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.
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.
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.4P
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