At the Nash equilibrium of an oligopoly market:

Question

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At the Nash equilibrium, each firm is making a profit-maximizing choice given the choices of its rivals. This means that no firm can increase profits by unilaterally changing its strategy, as any deviation from its current strategy would result in decreased profits. Therefore, each firm is producing at the optimal output level given the actions of its competitors, resulting in a balanced market outcome.

At the Nash Equilibrium of an Oligopoly Market