Question
I just need my answers checked. 1. A Nash equilibrium is a situation where both players come to an agreement not to change strategies at
I just need my answers checked.
1. A Nash equilibrium is a situation where both players come to an agreement not to change strategies at the same time.
False
2. A Nash equilibrium is a situation where no player has an incentive to unilaterally change their strategy.
True
3. Analyzing oligopolies requires game theory because of the fact that, unlike perfect competition, firms have the ability to affect the price, and hence the optimal decisions of the other firms.
True
4. When oligopolists compete, the equilibrium is determined by each firm colluding to keep prices low and make the most profit possible.
True
5.When oligopolists compete, the equilibrium is determined by each firm not having an incentive to unilaterally change their output or price decision.
True
6. When firms compete by choosing output, the resulting market outcome will be efficient (maximize total surplus).
False
7.When firms compete by choosing price, the resulting market outcome will be efficient (maximize total surplus).
True
8. In terms of efficiency (maximizing total surplus), perfect competition does better than Cournot, which does better than Bertrand, which does better than monopoly.
False
9. In terms of efficiency (maximizing total surplus), perfect competition does just as good as Bertrand, which does better than Cournot, which does better than monopoly.
True
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