An Equilibrium in Which Each Firm in an Oligopoly Maximizes

question 355

Multiple Choice

An equilibrium in which each firm in an oligopoly maximizes profit, given the actions of its rivals, is called

• A)a general equilibrium.
• B)a dominant equilibrium.
• C)a Nash equilibrium.
• D)an oligopoly equilibrium.

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Definitions:

Dependent Outcome Variable

In research, a variable whose variation depends on that of another variable (the independent variable).

Leader Substitutes Theory

A concept suggesting that certain characteristics of a situation or members can reduce the importance of the leader's role, effectively substituting for their leadership.

Leadership Necessary

The essential requirement for someone to guide, direct, and influence others towards achieving goals.

Leader Discretion

The authority and freedom leaders have to make decisions, exercise judgment, and act based on their understanding and assessment of situations.