Assuming That Oligopolists Do Not Have the Opportunity to Collude

question 83

Multiple Choice

Assuming that oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it

• A)is always in their best interest to supply more to the market.
• B)is always in their best interest to supply less to the market.
• C)is always in their best interest to leave their quantities supplied unchanged.
• D)may be in their best interest to do any of the above, depending on market conditions.

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Definitions:

Implement

To put a decision, plan, strategy, or law into effect or action.

Strategy

A comprehensive plan or set of actions designed to achieve long-term goals or overall objectives, especially in business or military contexts.

Integrated

The process of combining or coordinating separate elements to work together as a unified whole, enhancing efficiency and effectiveness.

Externally-oriented

A focus or approach that prioritizes external factors, such as market trends and customer needs, over internal issues.