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:

Constructive Trust

A legal concept created by a court to rectify a situation where someone has wrongfully gained property at another's expense.

Agency Relationship

An agency relationship occurs when one party, the agent, is authorized to act on behalf of another party, the principal, in dealings with third parties.

Breaches

Instances of violation or non-compliance with laws, regulations, contracts, or standards.

Agency Agreement

A contract between two parties where one (the agent) agrees to represent or act on behalf of the other (the principal) in business dealings.