When Oligopolistic Firms Interacting with One Another Each Choose Their

question 172

Multiple Choice

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market, we have

• A)a cartel.
• B)a group of oligopolists behaving as a monopoly.
• C)a Nash equilibrium.
• D)the perfectly competitive outcome.

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Definitions:

Marginal Analysis

The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.

Marginal Benefits

The uplift in utility or enjoyment gained through consuming or producing an added unit of a good or service.

Marginal Costs

The added cost incurred when one more unit of a good or service is produced.

Marginal Benefit

The additional pleasure or utility gained when one more unit of a good or service is consumed.