If duopolists individually pursue their own self-interest when deciding how much to produce, the price they are able to charge for their product will be equal to the monopoly price.

Question

Quizplus · Accepted Answer

If duopolists individually pursue their own self-interest when deciding how much to produce, they will produce more than they would under a monopoly, resulting in a lower price than the monopoly price. This is known as the Nash equilibrium.

If Duopolists Individually Pursue Their Own Self-Interest When Deciding How