Price Wars Can Be the Result of

Multiple Choice

Price wars can be the result of

A) new firms entering an industry and all firms then finding themselves in a prisoners' dilemma.
B) a cooperative equilibrium.
C) a firm playing a tit- for- tat strategy in which in the last period the competitors complied with a collusive agreement.
D) new firms entering the industry and immediately agreeing to abide by a collusive agreement.