A Nash equilibrium is
A) reached when an oligopoly's market demand and supply intersect.
B) reached when each player chooses the best strategy for himself and for the group.
C) an equilibrium comprising non-dominant strategies only.
D) reached when each player chooses the best strategy for himself, given the other strategies chosen by the other players in the group.
D
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If an increase in the price of peaches reduces the demand for cream, this indicates that peaches and cream are
a. normal goods. b. inferior goods. c. complements. d. substitutes.
Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.