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Consider the Collusion of Mom Wakeboards and Pop Surfboards

Question 162

Multiple Choice

Consider the collusion of Mom Wakeboards and Pop Surfboards. If the game is played repeatedly, and both Mom and Pop employ a Grim trigger strategy, the equilibrium will be:


A) the competitive equilibrium.
B) the monopoly equilibrium.
C) the same as if there were only one consumer in the industry.
D) one in which consumer surplus is maximized.

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