Under a Cournot duopoly, the collusion curve represents:
A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly.
B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate.
C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly.
D) the potential profits to be earned by firms in a collusive cartel.
A
You might also like to view...
Which of the following prevents potential competitors from entering a monopolist's market?
a. legal restrictions b. diseconomies of scale c. product differentiation d. stable market demand e. rising marginal cost
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. If this scenario describes job searches in general, the segment of the population that is most risk-averse will tend to earn:
A. average salaries. B. stable salaries. C. below-average salaries. D. above-average salaries.
In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment. log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI (0.13) (0.022) (0.017) ? Which of the following statements is then true?
A. If FDI increases by 1%, gdp increases by approximately 22.2%, the amount of bank credit remaining constant. B. If FDI increases by 1%, gdp increases by approximately 26.5%, the amount of bank credit remaining constant. C. If FDI increases by 1%, gdp increases by approximately 24.8%, the amount of bank credit remaining constant. D. If FDI increases by 1%, gdp increases by approximately 52.7%, the amount of bank credit remaining constant.
The largest exporter of goods and services in the world is
a) China b) European Union c) Japan d) Mexico e) Saudi Arabia