Asked by Austin Vaughn on Jun 28, 2024

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# If the members of an oligopoly could agree on a total quantity to produce and a price to charge, what quantity and price would they choose? Will this choice represent a Nash equilibrium?

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the strategies of the other players remain unchanged.

Oligopoly

A market structure characterized by a small number of firms controlling a large market share, leading to limited competition.

- Investigate the strategic deliberations of businesses within game theory situations, particularly concerning supreme strategies and Nash stability points.

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CS

Christian SalcedoJun 30, 2024

Final Answer :

the monopoly quantity and price; no because the self-interests of the individual oligopolists will encourage each oligopolist to produce a slightly higher level of output than the oligopolist's share of the monopoly quantity, which will lower the market price

## Learning Objectives

- Investigate the strategic deliberations of businesses within game theory situations, particularly concerning supreme strategies and Nash stability points.