If Two Firms Exist in the Market, It Is Often

question 17

Multiple Choice

If two firms exist in the market, it is often expected that the Cournot (Nash) equilibrium will occur. If the firms have significant excess capacity, then it is likely that corporate strategy will emphasize:

• A) competition and high prices.
• B) competition and low prices.
• C) cooperation and low prices.
• D) cooperation and high prices.

---

Definitions:

Work Engagement

A positive work-related state of mind that is characterized by vigour, dedication, and absorption.

Organizational Citizenship Behaviour

Voluntary behaviors employees perform to help others and benefit the organization, beyond their formal job requirements.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Role Ambiguity

A situation in which an individual's role within an organization is unclear, leading to confusion and potentially stress.