Multiple equilibria exist when:
A)there are many different product markets, each with its own equilibrium.
B)a market splits in two, so that there are two markets, each with its own equilibrium.
C)there are multiple products but one market with one equilibrium for these products.
D)there is more than one equilibrium.

Question

Quizplus · Accepted Answer

Multiple equilibria exist when there is more than one equilibrium, meaning there are multiple stable outcomes for the market. This can occur due to various factors such as external shocks, network effects, or coordination failures among agents in the market.

Multiple Equilibria Exist When