1. The Canadian bread price-fixing scandal that we watched a video about in class is an example of A) Perfect competition B) Entry deterring behaviour by incumbent firms C) Monopoly Collusion Firm 2 Cooperate Cheat Firm 1 Cooperate 50, 50 60 , 100 Cheat 40 , 10 20 , 20 N Suppose there are only two firms supplying the market and they have discussed forming a cartel. Each firm can either Cooperate and produce the agreed upon cartel quantity or Cheat and increase their quantity supplied. Their profit from each action are displayed in the table above. Given the information above, Firm 1 will and Firm 2 will A) Cooperate; Cooperate B) Cheat; Cooperate C) Cooperate; Cheat D) Cheat; Cheat Firm B Cooperate Cheat Firm A Cooperate 50 , 50 10 , 100 Cheat 100 , 10 20 20 m Suppose there are only two firms supplying the market and they have discussed forming a cartel. Each firm can either Cooperate and produce the agreed upon cartel quantity or Cheat and increase their quantity supplied. Their profit from each action are displayed in the table above. Given the information above, Firm A will and Firm B will A) Cooperate; Cooperate B) Cheat; Cooperate C) Cooperate; Cheat D) Cheat; Cheat 4. A market with only two firms is called A) Monopoly B) Oligopoly LC Duopoly D) Competitive