1. 1) True or False. If False, supply a reason.

   1. a) The Nash equilibrium is a strategy profile where both players’ payoffs can improve by

      changing their strategies.

   2. b) In an oligopoly, there are a few sellers who can collude and raise prices

   3. c) In the prisoners’ dilemma, both players get their highest payoff by pursuing their own self-

      interest

   4. d) In monopolistic competition, each firm generates a deadweight loss, but end up with positive

      profits.

   5. e) In monopolistic competition, firms advertise to capture market share.