question archive Price wars can be the result of A

Price wars can be the result of A

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Price wars can be the result of

A. a cooperative equilibrium.

B. new firms entering the industry and immediately agreeing to abide by a collusive agreement.

C. new firms entering the industry and all firms then finding themselves in a prisoners' dilemma.

D. a firm playing a tit-for-tat strategy in which last period the competitors complied with a collusive agreement.

Option 1

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