Cooperation is ________ likely in a repeated game because it ________ possible for players to punish each other for cheating.

Select one:

a.less; is

b.more; is

c.less; is not

d.more likely; is not

Mario's Pizza and Bella's Pizza are in tacit collusion to cooperate and each charge a high price for their pizzas. If Mario's Pizza initially cooperates with Bella's Pizza, but then switches and charges a low price and Bella's Pizza responds by forever charging a low price, this is an example of ________.

Select one:

a.a one-shot game

b.a trigger strategy

c.a tit-for-tat strategy

d.an end-period problem

View Your World, a high-end window manufacturer, directly pays all of the transaction costs. The managers of View Your World are considering the profit-maximizing location for their plant. If locating the plant closer to its customers saves $7,000 in transportation costs of its windows to its customers, but causes an additional $7,500 in input transportation costs, View Your World ________ locate its plant closer to its customers as the marginal benefit is ________ than the marginal cost.

Select one:

a.should; less

b.should; greater

c.should not; more

d.should not; less

A firm has two plants, one located in desirable Scenic Springs and the other located in the undesirable Swamp Lands. If the workers in Scenic Springs are paid $50,000 a year and the workers in Swamp Land are paid $60,000, which of the following is true?

Select one:

a.The $10,000 difference in salaries is the worker equity payment.

b.The $60,000 salary is a compensating wage differential.

c.The $60,000 salary is a worker equity payment.

d.The $10,000 difference in salaries is the compensating wage differential.