How are oligopolists generally best off,in terms of their profits
A)operating in a Nash equilibrium
B)producing a total quantity of output that falls short of the Nash-equilibrium total quantity
C)producing a total quantity of output that exceeds the Nash-equilibrium total quantity
D)charging a price that falls short of the Nash-equilibrium price

Question

Quizplus · Accepted Answer

Oligopolists are generally best off when they produce a total quantity of output that falls short of the Nash-equilibrium total quantity because this allows them to restrict output and keep prices higher, similar to a monopoly, thereby maximizing their profits.

How Are Oligopolists Generally Best Off,in Terms of Their Profits