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Basic Question 17 of 17
An equilibrium in which the players make and share the monopoly profit is a ______
B. contestable market
C. Nash equilibrium
D. cooperative equilibrium
A. collusive agreement
B. contestable market
C. Nash equilibrium
D. cooperative equilibrium
User Contributed Comments 6
| User | Comment |
|---|---|
| pavelopv | why C? isn't monopolistic profit divided amoung players in collusive agreement? At Nash equilibrium sum of profits of the players is less than monopolistic profit! Am I mistaken? |
| Mikael | If players SHARE the monopoly profit, they cooperate, which is not always the case in a Nash equilibrium. So, D is my answer. |
| Sabs | Read the question guys, it say "An equilibrium....." Its asking about the equilibrium not what kind of agreement. |
| JoeHoong | Wow, "an equilibrium", tricky question.. |
| dipu617 | Thanks Sabs!! |
| fzhou | It's "share the monopoly profit" that makes the questions tricky... |
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Learning Outcome Statements
explain supply and demand relationships under oligopoly, including the optimal price and output for firms as well as pricing strategy
CFA® 2025 Level I Curriculum, Volume 1, Module 1.