Which of the following assumptions were made by the Cournot model of oligopoly?
a. Each seller psychoanalyzes the competition and decides how to react in all possible situations.
b. Each seller psychoanalyzes the competition and exactly predicts the output decisions of the competitors.
c. Each seller chooses its own output and believes the others in the market will respond to its choices.
d. Each seller chooses its own output and believes the others in the market will not respond to its choices.
D
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Where would a country such as Japan get U.S. dollars in order to engage in managed float?
a. It would print them. b. It would use its reserve of dollars. c. It would sell yen on the open market in exchange for U.S. dollars. d. Since Japan's currency is the yen, it would not be able to obtain U.S. dollars. e. It would borrow U.S. dollars form the U.S.
Publicly provided education is generally considered
A. a public good that generates positive externalities. B. not to be a public good that generates negative externalities. C. not to be a public good that generates positive externalities. D. a public good that generates negative externalities.
Resource X is necessary to the production of good Y. If the price of resource X rises,
A) the supply curve of Y shifts leftward. B) the supply curve of Y shifts rightward. C) the supply curve of Y is unaffected. D) there is a movement down the supply curve of Y. E) there is a movement up the supply curve of Y.
Which of the following is included in M2 but not in M1?
a. demand deposits b. corporate bonds c. large time deposits d. money market mutual funds