Refer to the information provided.In a non-repetitive game, which of the following is the dominant strategy of Irun when production levels are in accordance with the collusive agreement?
A)increase production only after Urun increases production
B)unilaterally increase production
C)decrease production only after Urun increases production
D)unilaterally decrease production

Question

Quizplus · Accepted Answer

In a non-repetitive game, the dominant strategy for a firm (Irun in this case) when production levels are in accordance with a collusive agreement would be to unilaterally increase production. This is because, without the expectation of future retaliation or cooperation (as the game is non-repetitive), the firm can maximize its immediate payoff by deviating from the agreement to produce more, assuming the other firm (Urun) sticks to the collusive production level. This action would allow Irun to capture a larger market share and increase profits in the short term, without concern for future consequences within the game's context.

Refer to the Information Provided