When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market, we have
A)a cartel.
B)a group of oligopolists behaving as a monopoly.
C)a Nash equilibrium.
D)the perfectly competitive outcome.

Question

Quizplus · Accepted Answer

This situation describes a Nash equilibrium, where each firm's strategy is the best response to the strategies of the other firms in the market. In other words, no firm can unilaterally change its strategy and improve its own outcome.

When Oligopolistic Firms Interacting with One Another Each Choose Their