If the businesses last forever, then the Nash Equilibrium is
a. for one firm to charge a HP forever
b. for your firm charge a LP when the other firm does
c. for each firm to charge HP until the rival does, and then to charge a LP forever.
d. for each firm to charge LP until the rival does, and then to charge a HP forever.
c
You might also like to view...
The greater the substitutability between Northwest timber and Southeast timber, the ________ is the cross elasticity of demand between timber from the two regions and the ________ is the elasticity of demand for Northwest timber
A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger
How does the concept of elasticity allow us to improve upon our understanding of supply and demand?
a. Elasticity allows us to analyze supply and demand with greater precision than would be the case in the absence of the elasticity concept. b. Without elasticity, we would not be able to address the direction in which price is likely to move in response to a surplus. c. Without elasticity, we would not be able to address the direction in which price is likely to move in response to a shortage. d. Without elasticity, it is very difficult to assess the degree of competition within a market.