Suppose that Barack and Michelle are duopolists. Barack is producing 300 units of output, and Michelle is producing 400 units of output. When Michelle produces 400 units, Barack maximizes profit by producing 300 units. When Barack produces 300 units of output, Michelle maximizes profit by producing 400 units. Barack and Michelle are
a. in a competitive market.
b. at a Nash equilibrium.
c. producing with no deadweight loss.
d. selling at a price higher than the monopoly price.
b
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A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
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