Examlex

Solved

Assume That All Firms in This Industry Have Identical Cost

question 88

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.   In the long run, there will be ________ firms in this market. A) 10 B) 15 C) 25 D) 50 In the long run, there will be ________ firms in this market.


Definitions:

Nash Equilibrium

A concept in game theory where no player can gain by unilaterally changing their strategy if the strategies of the other players remain unchanged.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and potentially high prices.

Interdependent

A relationship between entities in which each is mutually reliant on the other, often used to describe economies or markets that affect one another.

Dominant Strategy

A dominant strategy is a course of action in a strategic game or situation that results in the best outcome for a player, regardless of what the other players decide to do.

Related Questions