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:

Contingent Payment

A payment that is not guaranteed but depends on the occurrence of a certain event or condition in the future.

Cash Flows

The complete sum of funds moving into and out of an enterprise, predominantly affecting its ability to cover short-term obligations.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.