Under what circumstances do firms in a balanced oligopoly arrive at a Nash equilibrium outcome?
A Nash equilibrium is obtained at low prices and those prices are assured because both firms in a two-firm oligopoly have chosen a worst case scenario strategy. This strategy guarantees that a firm will still earn profit regardless what its rival does.
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A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . At what price does the firm consider shutting-down in the short run?
a. $25 b. $0 c. $15 d. $10
When marginal cost is decreasing, total cost is rising
a. True b. False
Based on the quantity equation, if Y = 3,000 . P = 3, and V = 4, then M =
a. $4,000. b. $2,250. c. $250. d. $36,000.
If the MPC is 0.95 and the MPM is 0.05, the open economy multiplier is 10.
Answer the following statement true (T) or false (F)