As a group, oligopolists earn the highest profit when they
A)achieve a Nash equilibrium.
B)produce a total quantity of output that falls short of the Nash-equilibrium total quantity.
C)produce a total quantity of output that exceeds the Nash-equilibrium total quantity.
D)charge a price that falls short of the Nash-equilibrium price.

Question

Quizplus · Accepted Answer

Oligopolists earn the highest profit when they restrict output below the Nash-equilibrium quantity, similar to a monopoly, which allows them to charge higher prices and maximize joint profits.

As a Group, Oligopolists Earn the Highest Profit When They