The prisoners\' dilemma explains whyAnswer oligopolists earn zero economic profi

Question

The prisoners' dilemma explains whyAnswer oligopolists earn zero economic profits in the long run firms with lower production costs tend to dominate oligopolistic industries cartels are inherently unstable dominant firms are price leaders oligopolists earn zero economic profits in the long run firms with lower production costs tend to dominate oligopolistic industries cartels are inherently unstable dominant firms are price leaders oligopolists earn zero economic profits in the long run firms with lower production costs tend to dominate oligopolistic industries cartels are inherently unstable dominant firms are price leaders

Explanation / Answer

3.) cartels are inherently unstable

Reason: As firms co-operation is required for improving profit.So Cartels will be unstable if it lacks co-operation in oligopoly.this is called prissoners dilemma, hence answer is 3

ans:3.) cartels are inherently unstable

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