In a Bertrand duopoly with product differentiation, explain how a change in one firm's marginal cost can have an effect on the price charged by the other firm
What will be an ideal response?
Each firm's price is a function of the other firm's price. If one incurs an increase in marginal cost, it raises its price. This, in turn, causes the other firm to raise its price.
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The practice of approving mortgages in order to sell them as mortgage-backed securities is known as ________
A) originate-to-distribute B) principal-agent engineering C) predatory lending D) a credit default swap
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QWhen each firm produces 8 units, ________ has a lower total cost, and when each firm produces 12 units, ________ has a lower total cost.
A. Mega Corp; Big Inc B. Big Inc; Mega Corp C. Big Inc; Big Inc D. Mega Corp; Mega Corp
In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately:
A. 1 to 3 percent. B. 5 to 9 percent. C. 10 to 14 percent. D. 15 to 19 percent.
During the period from 2000 to today the Labor Force Participation Rate
A. Fell. B. Increased due largely to women entering the labor force C. Increased due largely to teens entering the labor force D. Remained remarkably constant