Firm a and Firm B Are Duopolists

question 85

Multiple Choice

Firm A and Firm B are duopolists.They are choosing the price at which they will sell their products and the quantity they will sell.Both firms make their decisions simultaneously.The ________ equilibrium in this situation occurs when Firm B chooses a pricing strategy given the strategy that Firm A chooses,and Firm A chooses a pricing strategy given the strategy that Firm B chooses.

• A) antitrust
• B) Nash
• C) Von Neumman
• D) Morgenstern
• E) cartel

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Definitions:

Fixed Cost

Expenses that remain constant regardless of production or sales volumes, including rent, salaries, and insurance premiums.

Servicing Materials

Supplies and materials used in the maintenance or repair of equipment and machinery to ensure their proper functioning.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Cost

Expenses that vary directly with levels of output or production volume.