Changes

12.  An agreement by different firms with each other to reduce output is illegal.  Why should that be illegal?

12.  An agreement by different firms with each other to reduce output is illegal.  Why should that be illegal?

:Yes, because reducing output is harmful to the public.

:Yes, because reducing output is harmful to the public. In economic terms, reducing output causes a "deadweight loss."

13.  Nash equilibrium, revisited:  What is the [[Nash equilibrium]] for two gas stations (an oligopoly) that are situated immediately across the street from each other?  In other words, what price do they sell at, expressed in terms of one of their cost measures?  Explain the process that reaches that "equilibrium".

13.  Nash equilibrium, revisited:  What is the [[Nash equilibrium]] for two gas stations (an oligopoly) that are situated immediately across the street from each other?  In other words, what price do they sell at, expressed in terms of one of their cost measures?  Explain the process that reaches that "equilibrium".