标题: Oligopoly firms that cheat on pricing agreements Qbank [打印本页] 作者: richer 时间: 2011-7-13 16:44 标题: Oligopoly firms that cheat on pricing agreements Qbank
Statement 1: “When oligopoly firms cheat on price fixing agreements, the resulting price and output quantity approaches that of perfect competition.”
Below is a statement form a qbank question, they didnt indicate whether or not it was correct in the answer explaination, I'm assuming it is but can anyone clarify?作者: koba 时间: 2011-7-13 16:44
That is Nash equilibrium. Both firms cheat and neither firm will make an economic profit which is like perfect competition.
