The dominant-strategy equilibrium in a game implies that each firm _____

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In a dominant-strategy equilibrium, each firm selects its dominant strategy without considering the decisions of the other firms. This means that the firms do not collude to increase profits or set high prices, but rather act independently to maximize their own profits. The dominant-strategy equilibrium is often considered a strong solution concept in game theory because it does not rely on cooperation or coordination between the players.

The Dominant-Strategy Equilibrium in a Game Implies That Each Firm