(c) Consider an oligopoly. Suppose that one of the firms has the option to move before its opponents (instead of the firms deciding simultaneously). Statement: the firm will never strictly prefer to forgo this option. (d) It is optimal for a monopolist to choose a quantity such that ea < 1.
(c) Consider an oligopoly. Suppose that one of the firms has the option to move before its opponents (instead of the firms deciding simultaneously). Statement: the firm will never strictly prefer to forgo this option. (d) It is optimal for a monopolist to choose a quantity such that ea < 1.
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.6P
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