If Firms in a Duopoly with Homogeneous Products Compete on Price,a

question 169

Multiple Choice

If firms in a duopoly with homogeneous products compete on price,a Nash equilibrium is reached when each firm charges a price ________.

• A) equal to its average cost
• B) higher than its average cost
• C) equal to its marginal cost
• D) lower than its marginal cost

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Definitions:

TCP/IP

The main suite of protocols used for transmitting data over the Internet; short for Transmission Control Protocol (TCP) and Internet Protocol (IP).

Protocols

Sets of rules and standards used to enable and manage the exchange of data between devices in a network.

Internet Backbone

The main pathway of high-speed communications lines over which all Internet traffic flows.

Dotted Quad

A representation of IPv4 addresses consisting of four numbers separated by dots, with each number ranging from 0 to 255, indicating distinct parts of the IP address.