The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. Both firms setting a high price is NOT a Nash equilibrium because
A) setting a high price is the dominant strategy for each firm.
B) neither firm can improve its payoff by setting a low price given that the other firm is setting a high price.
C) there is no dominant strategy for either firm.
D) both firms can improve their payoff by setting a low price given that the other firm is setting a high price.
D
Economics
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Stagflation may follow an inflationary boom
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An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product, is an example of:
A. monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.
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