Assuming That Oligopolists Do Not Have the Opportunity to Collude

question 83

Multiple Choice

Assuming that oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it

• A)is always in their best interest to supply more to the market.
• B)is always in their best interest to supply less to the market.
• C)is always in their best interest to leave their quantities supplied unchanged.
• D)may be in their best interest to do any of the above, depending on market conditions.

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Definitions:

Overestimate

To assess a quantity or value too high in relation to its actual value.

Feel-Good,Do-Good Phenomenon

The observation that people are more likely to help others when they are in a good mood themselves.

Healthy Grandson

Indicates a male grandchild who is in a state of good physical and mental health.

Generous Sum

A reference to a notably large amount of money or resources given or received.