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1. Why has the cartel in diary farming not been broken up? Organized crime is us

ID: 1167148 • Letter: 1

Question

1.

Why has the cartel in diary farming not been broken up?

Organized crime is used to enforce a dairy compact.

The dairy industry is exempt from anti-trust laws.

Consumers do not mind paying higher prices for milk.

Economic studies indicate that to do so would decrease efficiency.

2.

The Axelrod study shows that "Tit-for-Tat" is a successful strategy for playing a repeated Prisoners' Dilemma game.

True

False

3.

A Nash equilibrium need not be Pareto optimal, and a Pareto-optimal outcome need not be a Nash equilibrium.

True

False

4.

Which of the following is an example of a good that is excludable and nonrivalrous?

A fishery.

Cable television.

Over the air television broadcasts.

Disney World.

Organized crime is used to enforce a dairy compact.

The dairy industry is exempt from anti-trust laws.

Consumers do not mind paying higher prices for milk.

Economic studies indicate that to do so would decrease efficiency.

2.

The Axelrod study shows that "Tit-for-Tat" is a successful strategy for playing a repeated Prisoners' Dilemma game.

True

False

3.

A Nash equilibrium need not be Pareto optimal, and a Pareto-optimal outcome need not be a Nash equilibrium.

True

False

4.

Which of the following is an example of a good that is excludable and nonrivalrous?

A fishery.

Cable television.

Over the air television broadcasts.

Disney World.

Explanation / Answer

1)

Right Answer is "


The dairy industry is exempt from anti-trust laws.

Dairy industry and beef are exempt from anti trust law. Hence cartels are be witnessed in farm sector.

2)

This is true statement.

Tit-for-Tat" is a successful strategy for playing a repeated Prisoners' Dilemma game.

3)

This is true statement.

Prisoner dilemma does not cause efficiency in economic system. Both players team tend to underperform.

4)

Right answer is : Disney world.

Those who do not pay for it are excluded from its benefits. Consumption by few people reduce its availability for other ones.