Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will
A) have a lower price for its product than its competitor.
B) produce a smaller output than its competitor.
C) have a higher price for its product than its competitor.
D) produce a larger output than its competitor.
D
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A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?
A) The supply of golf clubs decreases. B) The demand for golf clubs increases. C) The demand for golf clubs decreases. D) The supply of golf clubs increases. E) The demand for and the supply of golf clubs decreases.
Total revenue received by surfboard manufacturers increases by $2 million when the price of a surfboard decreases by $10. The price the elasticity of demand for surfboards is
A) between 0 and 1. B) greater than 1. C) equal to 0. D) some amount that is impossible to determine without more information.
John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina receives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy
What is the economy's marginal social benefit from one missile? A) $50 B) $65 C) $80 D) $195
A single-price monopoly is ______
A. inefficient because it converts consumer surplus to producer surplus B. inefficient because it produces too small an output and creates a deadweight loss C. efficient because buyers are paying a price equal to their willingness to pay D. efficient because it is the only producer of the good