Which of the following explains why oligopolies can fail to maintain cooperation?
(i) the story of the prisoners' dilemma
(ii) the cartel theory
(iii) the fact that self-interest is not consistent with collective group interest
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii) and (iii)

Question

Quizplus · Accepted Answer

The prisoners' dilemma illustrates how individual self-interest can lead to a breakdown in cooperation, and self-interest often conflicts with collective group interest, making it difficult for oligopolies to maintain cooperation.

Which of the Following Explains Why Oligopolies Can Fail to Maintain