Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 17 - Part V - Oligopoly - Quick Check Multiple Choice - Page 367: 5

Answer

The correct answer is "C.".

Work Step by Step

The answer "A" is wrong because the Nash equilibrium is always the worst situation. The answer "B" is wrong because the Nash equilibrium is equally bad for both individuals. The answer "D" is wrong because the self-interessed individuals will tend to fall on the Nash equilibrium, not avoid.
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