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Bryce Ridgway-Duncan
on Nov 16, 2024

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When an oligopoly market reaches a Nash equilibrium,

A) the market price will be different for each firm.
B) the firms will not have behaved as profit maximizers.
C) a firm will have chosen its best strategy, given the strategies chosen by other firms in the market.
D) a firm will not take into account the strategies of competing firms.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Oligopoly Market

A market structure characterized by a few firms controlling the majority of the market share, leading to limited competition.

Profit Maximizers

Entities or persons striving to maximize their earnings through their activities.

  • Comprehend Nash equilibrium and its significance in oligopoly markets.
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Kamron GonzalezNov 18, 2024
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