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Question
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.
a. antitrust
b. Nash
c. Von Neumman
d. Morgenstern
e. cartel
Answer
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