Which condition is the Nash equilibrium for this scenario?
a. Each firm charges $9.
b. Each firm charges $10.
c. Firm A charges $10 while Firm B charges $9.
d. Firm B charges $10 while Firm A charges $9.
a. Each firm charges $9.
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How does a bond sale by the Fed affect the money supply?
(A) The sale increases the money supply but not in the proportion that the multiplier effect would suggest. (B) The sale increases the money supply. (C) It does not affect the money supply. (D) The sale decreases the money supply.
The Heckscher-Ohlin theory predicts that the opening of trade between a land-abundant country and a labor-abundant country should result in
A. higher wages in the labor-abundant country and higher rents in the land-abundant country. B. higher rents and wages in both countries. C. lower rents and wages in both countries. D. higher rents in the labor-abundant country and higher wages in the land-abundant country.