If Only Two Identical Firms Operate in a Market,consumers Prefer

question 85

Multiple Choice

If only two identical firms operate in a market,consumers prefer

• A) a Cournot equilibrium.
• B) a Stackelberg equilibrium.
• C) a collusive equilibrium.
• D) any equilibrium since they all result in the same consumer surplus.

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Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services, before any expenses are deducted.

Variable Costs

Costs that vary in direct proportion to the volume of output or production in a company.

Variable Costs

Costs that vary directly with the level of production or service delivery.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance.