Which of the following is true when a Nash equilibrium is reached in a duopoly with homogeneous products?
A) Both the firms earn positive economic profits.
B) Each firm charges a price equal to its average fixed cost.
C) Both the firms earn zero economic profits.
D) Both firms incur huge losses.
C
Economics
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Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is
A) 50,000 and $100. B) 80,000 and $80. C) 60,000 and $50. D) 40,000 and $20. E) 100,000 and $20.
Economics
The compensated demand curve holds the consumer's utility fixed as the price changes
Indicate whether the statement is true or false
Economics