In a Nash equilibrium outcome for a two-firm balanced oligopoly
a. both firms avoid the worst case possible
b. both firms end up in the worst case possible
c. prices charged by both firms are relatively high
d. profits earned by both firms are relatively high
e. both firms form a cartel
A
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Which of the following is NOT a non-price determinant of demand?
A. the price of the good or service B. prices of related goods and services C. expectations of future prices D. tastes and preferences
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. If the marginal cost of installing carpet is a constant $1 per sq yard, what price does Bob charge each segment?
What will be an ideal response?
Which of the following is a desirable characteristic in an economy?
A. high inflation B. low unemployment C. rapid increase in the general price level D. low employment
As pollution emission levels increase, the marginal social cost of pollution
A. falls to zero. B. does not change. C. increases. D. decreases.