If Two Perfectly Competitive Firms Produce the Same Quantity at the Market

question 184

Multiple Choice

If two perfectly competitive firms produce the same quantity at the market price, then, at that quantity, they must have the same

• A)marginal cost and average total cost
• B)marginal cost and average fixed cost
• C)average total cost and average fixed cost
• D)average fixed cost and average variable cost
• E)marginal cost

---

Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep theirs unchanged; it represents a state of mutual strategy optimization.

Extensive Form

A representation of games (in game theory) that illustrates the sequence of moves, available strategies, and potential outcomes in a tree diagram.

First-Mover Advantage

The competitive advantage gained by the initial significant occupant of a market segment.

Extensive Form

In game theory, a detailed representation of a game that includes the order of players' moves, their choices at every node, and the outcomes resulting from each combination of choices, displayed as a decision tree.