Assuming that oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it:
A) is always in their best interest to supply more to the market
B) is always in their best interest to leave supply unchanged
C) is always in their best interest to supply less to the market
D) may be in their best interest to do any of the above, depending on market conditions

Question

Quizplus · Accepted Answer

In a Nash equilibrium, each firm is doing the best it can given the actions of its competitors. Changing supply would not benefit them unless the competitors also change their strategies, which is not guaranteed without collusion.

Assuming That Oligopolists Do Not Have the Opportunity to Collude