12. The primary difficulty involved in using the profit maximizing model to describe oligopoly behavior is that:
- oligopolists don't have enough information to figure out their marginal costs, so the theory is wrong.
- oligopolists don't know what their dominant strategy is because they don't believe in the prisoners dilemma.
- there are too many Firms for us to figure out how profit maximzation works in such industries.
- an oligopolist's demand curve is dependent on the behavior of its competitors.
- explicit collusion is illegal.
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