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

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