Firm A and Firm B are duopolists.They are choosing the price at which they will sell their products and the quantity they will sell.Both firms make their decisions simultaneously.The ________ equilibrium in this situation occurs when Firm B chooses a pricing strategy given the strategy that Firm A chooses,and Firm A chooses a pricing strategy given the strategy that Firm B chooses.

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The situation described here is a classic example of a simultaneous game in which both players (Firm A and Firm B) make their decisions simultaneously. In such cases, the Nash equilibrium is the best strategy for both players, given the other player's strategy. The Nash equilibrium is the pricing strategy chosen by each player that maximizes their profits, given the other player's strategy. In this case, both firms must consider the other firm's pricing strategy when deciding how much to produce and to what price to sell their product. Therefore, the Nash equilibrium occurs when Firm B chooses a pricing strategy given the strategy that Firm A chooses, and Firm A chooses a pricing strategy given the strategy that Firm B chooses.

Firm a and Firm B Are Duopolists