Question

g If two duopolists arrive at the Nash equilibrium output level, the total quantity of the good on the market will be __________ the total quantity on the market if the market were perfectly competitive and __________ the total quantity on the market if the market were controlled by a monopoly. less than; less than less than; greater than greater than; greater than greater than; less than greater than; equal to

Answer 1

Answer:

Less than; Greater than.

Explanation:

The total goods quantity will be lesser in a competitive market while it will be greater in a monopoly state or market.

This also explains optimal price which can be defined as the price at which the seller can make the highest profit possible, that is, the seller’s price is maximized. The rule of marginal output postulates that profit is maximized by producing an output, whereby, the marginal cost (MC) of the last unit produced is exactly equal to the marginal revenue (MR).